Don’t miss the latest developments in business and finance.

TVS Motor hits 52-week high on hopes of higher scooter sales

The stock has rallied 42% so far in October compared to less than 10% rise each in Sensex and auto sector index.

Image
SI Reporter Mumbai
Last Updated : Oct 22 2013 | 11:31 AM IST
TVS Motor Company is continues at its upward march moving higher by 6% at Rs 52.25 on hopes of higher sales in festival season. The stock is currently trading at its highest level since February 2012 on the BSE.

Shares of two-three-wheeler maker has outperformed the market by surging 42% so far in October month compared to 8% rise in benchmark index and less than 10% gain in auto sector index.

The company had reported 16% year-on-year growth in total sales at 197,409 units during the month of September 2013 on back of healthy export sales. The growth in last month was the highest in past several months.

Meanwhile, the company, which has about 15% market share in the scooters segment, is confident of increasing it by 4 to 5% with the launch of Jupiter, the first product targeting male segment.

With this new launch, the company is hoping to increase scooter sales to 50,000 per month from around 34,000 units currently.

In a bid to further recoup its scooter segment market share, TVS Motor is expected to launch Scooty upgrade in January 2014. On the back of new launches and lower base, we expect TVS Motor’s domestic scooter volumes report positive growth in the second half (October to March) of FY14 and start regaining lost market share, says analyst at Kotak Securities.
 

Also Read

First Published: Oct 22 2013 | 11:29 AM IST

Next Story