TVS Motor Company achieved a significant milestone on Friday, February 16, emerging as the sixth automotive firm to attain a market capitalisation of ₹1 lakh crore. This achievement follows a remarkable 60% surge in the company's share price over the past six months.
The rally in TVS Motor's shares has not only propelled the Chennai-based company into an exclusive league but has also elevated its standing among global peers. In October of the previous year, the two-wheeler manufacturer surpassed the market valuation of the Japanese giant Yamaha Motor Co.
While Maruti Suzuki leads as the most valued Indian auto firm with a market capitalisation of ₹3.6 lakh crore, Tata Motors closely follows with a valuation of ₹3.4 lakh crore. Other major players in the automotive industry, such as Bajaj Auto and Mahindra & Mahindra, hold valuations around 2.3 lakh crore each. Eicher Motors commands a slightly over ₹1 lakh crore in valuation.
In the race for market capitalisation:
| Companies | Market Cap (Rs lakh crore) |
| Maruti Suzuki | 3.58 |
| Tata Motors | 3.43 |
| Bajaj Auto | 2.36 |
| Mahindra & Mahindr | 2.28 |
| Eicher Motors | 1.08 |
| TVS Motor Co | 1.02 |
Presently, only 78 companies boast a market capitalisation of at least ₹1 lakh crore. TVS Motor holds a position above Vedanta and Divi's Laboratories but is positioned below Macrotech Developers and Dr. Reddy's Laboratories in market cap ranks.
However, despite the recent surge in shares and increased competition, particularly in the electric vehicle (EV) space, analysts have adopted a cautious stance on TVS stock. J.P. Morgan, with a 12-month target price of ₹2,110 and a neutral rating, notes, "While we remain constructive on the business franchise, we believe competition (especially Hero and Bajaj Auto) is trying to make a comeback by improving their ICE+EV portfolio."
Nevertheless, TVS Motor posted positive figures in the third quarter of FY24, aligning with consensus estimates. The company's management anticipates continued domestic recovery in the two-wheeler segment, with TVS poised to outpace the market. Despite challenges such as lower exports, the company witnessed improved margins due to contribution management, reduced material costs, and an enhanced overall product mix.
Closing at ₹2,138.75 on the NSE at the end of Friday's session, TVS Motor's stock exhibited a 2.2% increase. Year-to-date, the stock has gained 6%, outperforming the benchmark Nifty50, which recorded a 1.4% increase during the same period.
(Edited by : Anand Singha)
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