Brokerage Report On TVS Motors
In recent reports from mid-to-late 2025, brokerage firms have offered mixed ratings on TVS Motor, with some maintaining a “Buy” rating while the consensus target price implies a potential near-term correction. Strong performance in the electric vehicle (EV) and export segments is offset by concerns over high valuations and rising competition.
Recent brokerage actions and target prices
Brokerage firms have assigned a range of target prices for TVS Motor, reflecting different views on the company’s valuation and growth prospects.
- August 2025 Consensus: Analyst consensus puts the average target price at approximately ₹2,950 to ₹2,975, indicating a potential downside of 9–10% from its recent trading levels.
- Geojit BNP Paribas: In August 2025, it maintained a “Buy” rating and set a target of ₹3,282.00, which has since been met.
- JPMorgan: On August 1, 2025, the firm maintained a “Neutral” rating with a target price of ₹3,020.
- Nomura/Instinet: On August 4, 2025, Nomura upgraded TVS Motor to a “Buy” rating with a target price of ₹3,230, seeing attractive prospects.
- CLSA: On August 1, 2025, CLSA maintained a “Hold” rating with a price target of ₹2,840.
Key analyst concerns and observations
Mixed valuation picture
- While TVS Motor has demonstrated high management efficiency and strong profit growth, some analysts are cautious about the stock’s current valuation.
- MarketsMojo noted concerns about the company’s high Debt-to-EBITDA ratio (3.21x) and its expensive valuation, which could be contributing to recent price dips.
- ICICI Securities downgraded its rating to “Hold” in late 2024, citing rich valuations despite strong performance.
Strong EV and export growth
- TVS continues to be a dominant player in India’s electric two-wheeler market. In Q1 FY26, its standalone EV sales saw a substantial year-on-year (YoY) increase, driven by strong demand for its iQube scooter.
- The company is also seeing strong export growth, with analysts noting robust performance in markets like Latin America and a gradual recovery in African markets.
- In August 2025, brokerage reports highlighted that TVS was outpacing competitors like Bajaj in exports during Q1, while Hero was lagging.
Domestic demand and margins
- Analysts noted a softening in rural demand in Q4 FY25 but anticipate a recovery, supported by a normal monsoon forecast and favorable agricultural trends.
- TVS demonstrated record-high operating EBITDA margins in Q4 FY25, though this was partly attributed to the recognition of Production Linked Incentive (PLI) benefits.
- Concerns persist about the motorcycle segment’s performance compared to scooters, along with potential headwinds from rising competition.
- The company plans to invest significantly in its EV business and is targeting expansion of its EV dealership network into suburban and rural areas.
What this means for investors
- Short-term outlook: Some investors and analysts are cautious in the near term due to high valuations, recent stock price volatility, and moderated domestic demand. The consensus target price reflects this cautious sentiment, suggesting a potential short-term correction.
- Long-term outlook: Longer-term prospects remain strong, driven by TVS’s leadership in the rapidly growing EV segment, its robust export performance, and its consistent margin expansion. The company’s focus on expanding its EV portfolio and network is a key long-term catalyst.
- Key factors to watch: Investors should monitor the sustainability of EV demand, competition in the electric and mid-weight motorcycle segments, and the impact of raw material price fluctuations on margins.
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- Disclaimer: This is a summary of recent brokerage reports and does not constitute financial advice. Investors should conduct their own due diligence before making investment decisions.
PLEASE CONSULT YOUR FINANCIAL ADVISOR : Investors are encouraged to conduct thorough independent research and consult with financial advisors before making any investment decisions.