TVS Motor Shares Hit 52-Week High On Fund Raising Buzz For EV Unit

TVS Motor shares are up 8.99% on the NSE. After reports circulated that the business is in talks to obtain funds for its EV subsidiary, the stock soared more than 11% in early trade on Tuesday.

The company's stock, which deals in automotive vehicles and parts, was trading near its all-time high of Rs 795, set on January 2, 2018.

On October 21, 2021, the company's board of directors approved the formation of a subsidiary to handle the electric mobility business. It plans to spend Rs 1,000 crore on product development and expansion. Premium scooters, high-performance sporty motorcycles, commuter space, delivery market, and 3Ws are among the areas where electric vehicles (EVs) are being launched.

The stock of TVS Motor has outperformed the market by 40 percent in the last month, compared to the S&P BSE Sensex's rise of less than 1%. The stock returned 28.04 percent over three years, compared to 67.66 percent for the Nifty 100. Over a three-year period, the stock returned 28.04 percent, while the Nifty Auto provided investors a 25.49 percent return.

The company recorded its highest-ever sales and earnings before interest, taxes, depreciation, and amortisation for the July-September quarter (Q2FY22) (Ebitda).

In the second quarter, the firm recorded revenue growth of 22% year on year (YoY) at Rs 5,619 crore, exceeding analyst expectations of Rs 5,400 crore, owing mostly to a 39% YoY increase in spare-part sales.

The restoration of export incentives, greater spare-part sales, and a one-time benefit linked to export incentives from the previous two quarters all helped to boost Ebitda margin by 70 basis points to 10%.