TVS Motor achieved a significant milestone today by becoming the sixth auto company to reach a market capitalization of Rs 1 lakh crore. As of Friday evening, the company’s market cap stood at Rs 1,01,578.38 crore on the BSE.
The stock price surged over 60 percent in the last six months, propelling TVS Motor into the league of companies with a market capitalisation exceeding Rs 1 lakh crore.
TVS Motor’s stock surged over 4% to reach a fresh 52-week high of Rs 2,186 on the NSE.
These gains were driven by a 28.57% stake subscription in the Indian Foundation for Quality Management (IFQM) and strong buying trends in most auto stocks.
TVS Motor announced its intention to acquire 2.5 crore equity shares valued at Rs 10 each, totalling Rs 25 crore. The allotment of shares by IFQM is expected to be completed on or before April 15, 2024, within a timeframe of 60 days from the receipt of the subscription amount, as per the exchange filing. This investment is considered a related party transaction and is being conducted at arm’s length. Notably, TVS Motor’s Managing Director, Venu Srinivasan, also serves as a director of IFQM.
Among the most valued auto firms, Maruti Suzuki leads with a market capitalization of Rs 3.6 lakh crore, followed closely by Tata Motors with a valuation of Rs 3.4 lakh crore. Bajaj Auto and Mahindra & Mahindra hold valuations around Rs 2.3 lakh crore each, while Eicher Motors’ valuation stands at over Rs 1 lakh crore.
On February 15, TVS Motor reported a delivery volume of 3.19 lakh, marking an 88.07% increase compared to the five-day average delivery volume.
According to a recent report by Motilal Oswal, TVS Motor is well positioned to outperform the 2W industry, driven by its successful products in key categories, expansion in global geographies, and success in EVs. The report also highlights that volume growth is likely to be supported by a recovery in the domestic 2W market, new products, and an uptick in exports. Additionally, TVS Motor benefits from economies of scale and operating leverage, sustaining its EBITDA margin at the double-digit level, as noted in Motilal Oswal’s January report on the company.