TVS Motor rides strong on Q2 beat, EV plans and capex; stock up 7.5%

While improving volumes is positive, the decision to set up a subsidiary for the EV business and a Rs 1,000-crore investment is a key trigger

The TVS Motor Company stock was up over 7.5 per cent in trade on Friday after the company reported strong performance in the September (Q2FY22) quarter. While the stock lost some of its gains on Monday, its decision to set up an electric vehicle (EV) subsidiary and investments in product development and capacity expansion was viewed favourably by the Street. In addition to this, the volume outlook for both domestic and export segments is expected to improve and this can further support the stock price.  

The immediate trigger has been the operating performance in Q2. Despite tough conditions, the company reported