TVS Motor shares surge as Singapore govt's investment arm buys stakes in 2-wheeler maker

TVS Motor, Government of Singapore, Bulk Deals, NSE, BSE: Integrated Core Strategies (Asia) Pte Ltd sold 39.77 lakh shares at an average price of Rs 1,046.69 per share through open market transactions, as per the bulk deal data on the NSE.

At around 12:50 AM, TVS Motor shares were trading flat with a positive bias, up around 0.5 per cent to Rs 1050.8 per share: Reuters

TVS Motor, Government of Singapore, Bulk Deals, NSE, BSE: Shares of TVS Motor Company Limited gained nearly 1.5 per cent to touch a day’s high level of Rs 1060.85 and Rs 1062.95 per share on the BSE and NSE intraday, respectively, on Thursday, December 1, as the Government of Singapore Investment Corporation picked up 0.5 per cent stakes in the company.

According to NSE Bulk Deals data, Government of Singapore Investment Corporation Pte Ltd A/C C Account bought 24.69 lakh shares in the two-wheeler maker at an average price of Rs 1,047.81 per share through an open market transaction on Wednesday.

Integrated Core Strategies (Asia) Pte Ltd sold 39.77 lakh shares at an average price of Rs 1,046.69 per share through open market transactions, as per the bulk deal data on the NSE.

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At around 12:50 AM, TVS Motor shares were trading flat with a positive bias, up around 0.5 per cent to Rs 1050.8 per share against a 0.4 per cent rise in the S&P BSE Sensex. The stock has outperformed the market by gaining around 67 and 54 per cent year-to-date and in one year period, respectively.

As per Pramod Kumar, Analyst at UBS Securities, TVS will emerge as a market leader in EVs (electric vehicles) over the medium to long term, given the response to the iQube and a best-in-class EV launch pipeline. The analyst expects five EV launches over the next 12-15 months.

“TVS will also start supplying a premium EV, developed and designed in Hosur, to BMW Motorrad for its global requirements. These launches could also act as a precursor for monetization of the EV arm in the near term,” Kumar said in a report being bullish on the stock.

To price in improving the visibility of the EV ramp-up and superior profitability, UBS raises the target multiple for the core business to 15x EV/EBITDA, closer to the 5-year average of 15.7x. The analyst maintains But call with a target price of Rs 1,267 apiece and roll forward estimates by 3 months to Q2 FY25E.

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