TVS Motor: Higher volumes, premium launches seen as key drivers of earnings

A key trigger for the stock is the premiumisation of its portfolio

A gradual recovery in domestic volume growth performance and new launches in the premium category, both in scooters and motorcycles, is expected to help TVS Motor post strong volume growth and improve margins, going ahead.

Domestic two-wheeler volume growth has been disappointing in May, as sales dipped to 2.4 per cent year-on-year, before recovering partially in June to about 8 per cent.

Some of the slowdown in volumes is due to the one-time impact on account of transition to the e-way bill under the goods and services tax (GST) regime.