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TVS Motor hits three-year high, stock surges over 100% in 3 months

The stock has rallied 18% to Rs 81.40, its highest level since December 2010, on the Bombay Stock Exchange.

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SI Reporter Mumbai
Last Updated : Dec 30 2013 | 11:23 AM IST
TVS Motor Company has rallied 18% to Rs 81.40, its highest level since December 2010, on back of heavy volumes on the Bombay Stock Exchange (BSE).

The stock opened at Rs 70.10 and hit a low of Rs 69.40 in early morning deals on the BSE. A combined 9.49 million shares already changed hands on the counter so far against an average sub two million shares that were traded daily in past two weeks on the BSE and NSE.

Shares of two-three-wheeler maker has outperformed the market by surging by 120% in past three months from Rs 36.79 on September 30, compared to 9% rise in benchmark index and 12% gain in auto sector index.

TVS Motor Company registered healthy domestic retail sales of 180,000 units November 2013, surpassing company expectations and even leading to stock out on some products, the company said in a statement while announcing November sales figures on December 2.

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.

Meanwhile, TVS Motor Company expects the company, on a stand-alone basis, would be debt-free by next year. It is also looking at its Indonesian subsidiary to be cash breakeven next year, by scaling up the sales following the recent launch of a skubec, a scooter format platform in Indonesia, the Business Standard report suggests.

The company is also infusing a capex of Rs 200 crore this year on new product launches, scaling up its three-wheeler capacity and its joint venture with BMW, added report.
 

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First Published: Dec 30 2013 | 11:21 AM IST

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