TVS Motor on a weak footing in two-wheeler space as rivals get preference

Brokerages prefer Bajaj and Hero, given its weak financial profile and premium valuation

Two-wheeler stocks were among the biggest gainers on Tuesday on beaten-down valuations and expected recovery in the segment. 

While all the two-wheeler stocks were up, gains for Hero MotoCorp and Bajaj Auto at 12 per cent each were more than twice that for TVS Motor. 

Given the uncertain near-term outlook, brokerages prefer market leaders with financial muscle, such as Hero MotoCorp and Bajaj Auto, over TVS Motor.

Nishit Jalan and Nikhil Kale of Axis Capital highlight that TVS Motor is the weakest in the two-wheeler sector in terms of balance sheet strength, as well as margins. 

They believe the only leveraged player in the