Welcome to our comprehensive analysis of TVS Motor share price target from 2024 to 2030. TVS Motor Company, a major player in the Indian two-wheeler and three-wheeler manufacturing industry, has shown significant growth and resilience over the years. This article delves into the company’s financial performance, key metrics, and projected share prices, providing valuable insights for potential investors.

Overview of TVS Motor Company

TVS Motor Company, headquartered in Chennai, is the third-largest two-wheeler and three-wheeler manufacturer in India. Established in 1911 by T.V. Sundaram Iyengar, the company has expanded its operations globally, with manufacturing plants in India and Indonesia. The company’s product range includes motorcycles, scooters, electric scooters, and three-wheelers.

Company Details:

• Name: TVS Motor Company Ltd
• Market Cap: ₹1,16,826.32 Crore
• 52 Week High: ₹2,530.89
• 52 Week Low: ₹1,295.05
• NSE Sine: TVSMOTOR
• Book Value: ₹163.25

Fundamental Analysis of TVS Motor Company

TVS Motor’s financial health is crucial for understanding its share price trajectory. Below are some fundamental metrics that highlight the company’s performance:

PE Ratio (Price to Earnings Ratio)

The PE Ratio measures a company’s current share price relative to its per-share earnings. For TVS Motor, the PE ratio is 55.23, indicating how much investors are willing to pay for each rupee of earnings.

Return on Assets (ROA)

ROA indicates how efficiently a company uses its assets to generate profit. TVS Motor’s ROA stands at 5.93%, reflecting a healthy asset utilization rate.

Current Ratio

The Current Ratio measures a company’s ability to pay short-term obligations. TVS Motor has a current ratio of 0.886, which is considered low, indicating potential liquidity concerns.

Return on Equity (ROE)

ROE measures the profitability of a company in relation to shareholders’ equity. TVS Motor’s ROE is 27.48%, showcasing strong profitability and efficient use of equity capital.

Annual Performance of TVS Motor Company

To gauge the future potential of TVS Motor’s share price, it’s essential to review its recent annual performance. The company has demonstrated robust growth in sales and profits over the past few years.

Key Performance Indicators:

• Net Sales (2022): ₹19,780.23 Crore
• Net Sales (2023): ₹25,758.20 Crore
• Net Profit (2022): ₹892.12 Crore
• Net Profit (2023): ₹1,392.03 Crore

TVS Motor Share Price Target 2024 to 2030

Based on current trends and financial health, we project TVS Motor’s share price targets for the coming years. These targets are derived from an analysis of the company’s growth strategies, market conditions, and financial performance.

TVS Motor Share Price Target 2024

TVS Motor has shown a consistent increase in sales and market value. By the end of 2023, the company had increased its international sales by 17%. Given the company’s growth trajectory and market conditions, the share price target for 2024 is projected as follows:

• 1st Price Target: ₹2,150
• 2nd Price Target: ₹2,630

TVS Motor Share Price Target 2025

In 2025, TVS Motor is expected to continue its upward trend, supported by strong financial growth and innovation in product development. The share price target for 2025 is projected as:

• 1st Price Target: ₹2,740
• 2nd Price Target: ₹2,936

TVS Motor Share Price Target 2027

By 2027, advancements in technology and increased production capacity are likely to drive further growth for TVS Motor. The share price target for 2027 is projected as:

• 1st Price Target: ₹3,352
• 2nd Price Target: ₹3,536

TVS Motor Share Price Target 2030

Looking towards 2030, the adoption of electric vehicles and continued international expansion are expected to play significant roles in TVS Motor’s growth. The share price target for 2030 is projected as:

• 1st Price Target: ₹4,274.36
• 2nd Price Target: ₹4,578.14

Investors Types and Ratio in TVS Motor Company Ltd

Understanding the investor composition can provide insights into the company’s stability and potential growth.

• Promoters Holding: 52.20%
• Public Holding: 7.89%
• Foreign Institutional Investors (FII): 17.89%
• Domestic Institutional Investors (DII): 22.02%

Investor Breakdown:

Should You Invest in TVS Motor Share Right Now?

TVS Motor has demonstrated consistent growth in profits and revenues, making it a potentially lucrative investment. The company’s strategic initiatives, such as increased production and international expansion, position it well for future growth. However, like any investment, it’s essential to consider the associated risks and market conditions.

Advantages and Disadvantages of TVS Motor Company Ltd

Advantages:

1. Strong Profit Growth: TVS Motor’s profit growth has been impressive, with a 37% increase in the last three years.
2. Revenue Growth: The company has a robust revenue growth rate of 15.12%.
3. High Cash Flow: TVS Motor’s substantial cash flow supports new production investments.
4. Zero Promoter Pledge: A 0% promoter pledge indicates financial stability.
5. High ROE: The company’s ROE of 27.48% signifies efficient use of equity.
6. Increasing Book Value: The company’s book value has been rising, indicating strong financial health.

Disadvantages:

1. Debt Levels: The company has some debt, which could pose challenges.
2. Decreasing Shareholding Capacity: The MSF decrease in shareholding capacity is a concern.
3. Intense Competition: TVS Motor faces stiff competition in the bike manufacturing sector.

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FAQs

Conclusion

In conclusion, TVS Motor Company Ltd has a strong track record of growth and profitability, making it a promising investment opportunity. With ambitious plans for innovation and expansion, the company’s share price is expected to rise steadily from 2024 to 2030. However, potential investors should conduct thorough research and consider market risks before making investment decisions.Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Always consult with a certified financial advisor before making investment decisions.