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TVS Motor Company has surged almost 10% to Rs 148, also its record high on BSE, on the back of heavy volumes on the counter.
At 1130 hours, a combined 4.97 million equity shares representing 1% of total equity changed hands on the counter against an average of less than two million shares that were traded daily in past two weeks on NSE and BSE.
The average monthly delivery volume of TVS Motor Company rose to 49% in June, with almost every one out of two shares traded in to delivery. It was 35% in May and 32% in January this year.
Foreign institutional investors (FIIs) have continued increases their stake in two-wheeler maker in past couple of quarters. FIIs holding in the company increased to 5.3% in March 2014 quarter from 3.35% in December 2013 and 2.51% at the end of September 2013 quarter.
Since September, the stock has rallied 385% from Rs 30.50 on BSE, compared to 37% rise in benchmark S&P BSE Sensex.
Meanwhile, Jinesh Gandhi and Chirag Jain analysts at Motilal Oswal Securities maintain ‘buy’ rating on the stock with a revised target price of Rs 172.
Despite a sharp run-up, the current price level ignores the recovery in two-wheeler industry, benefit of two major motorcycle launches (Star City Plus in 1QFY15, Victor re-launch in 2HFY14) and consequent boost to margins, analysts said in a report dated May 26, 2014.
At 1130 hours, a combined 4.97 million equity shares representing 1% of total equity changed hands on the counter against an average of less than two million shares that were traded daily in past two weeks on NSE and BSE.
The average monthly delivery volume of TVS Motor Company rose to 49% in June, with almost every one out of two shares traded in to delivery. It was 35% in May and 32% in January this year.
Foreign institutional investors (FIIs) have continued increases their stake in two-wheeler maker in past couple of quarters. FIIs holding in the company increased to 5.3% in March 2014 quarter from 3.35% in December 2013 and 2.51% at the end of September 2013 quarter.
Since September, the stock has rallied 385% from Rs 30.50 on BSE, compared to 37% rise in benchmark S&P BSE Sensex.
Meanwhile, Jinesh Gandhi and Chirag Jain analysts at Motilal Oswal Securities maintain ‘buy’ rating on the stock with a revised target price of Rs 172.
Despite a sharp run-up, the current price level ignores the recovery in two-wheeler industry, benefit of two major motorcycle launches (Star City Plus in 1QFY15, Victor re-launch in 2HFY14) and consequent boost to margins, analysts said in a report dated May 26, 2014.
