TVS Motor to ride strong on profitability gains in FY23: Brokerages

Volume recovery, market-share gains, and EV plans are other triggers

Expectations of margin expansion, straddling volume recovery, lower raw material prices, improvement in market share, and increased focus on electric vehicle (EV) product portfolio, are key triggers for India’s third-largest listed two-wheeler maker — TVS Motor Company.

These triggers have led to brokerage upgrades in the recent past and are reflecting in its stock price, up 15 per cent over the past fortnight. One of the key positives for the company is the scope for margin expansion.

IIFL Research highlights that metal prices have corrected 25-35 per cent, are now lower than the fourth quarter of 2020-21 levels, and will