PremiumTVS Motor Company shares dipped by nearly 4% on Monday after Srinivasan Trust sold equity shares worth more than ₹262 crore in a bulk deal. Srinivasan Trust is among the promoters of the company. TVS Motor shares were under pressure throughout the trading hours. The company missed estimates in the November month sales.
According to the bulk deal data on BSE, Srinivasan Trust offloaded 2,569,726 equity shares at a price of ₹1,020.03 per share --- aggregating to ₹262.12 crore.
As of September 30, 2022, Srinivasan Trust held 25,69,726 equity shares or 0.54% of the company.
With the latest selloff, it looks like Srinivasan Trust has exited TVS Motor shares.
On BSE, TVS Motor shares closed at ₹1,017.75 apiece down by ₹31.60 or 3.01%. The shares had touched an intraday low of ₹1,009.80 apiece -- resulting in an overall drop of 3.77% during the day.
At the current market price, TVS Motor's valuation is nearly ₹48,352 crore.
TVS Motor stock was also in focus after the company presented its November sales data where it registered a growth of 2% to 277,123 units. In November 2021, the company sold 272,693 units.
In terms of segment-wise performance, in November 2022, the company's total two-wheelers registered a growth of 2% with sales increasing to 263,642 units from 257,863 units in November last year. While motorcycle sales climbed by 4% to 145,006 units from 140,097 units in November 2021.
Swapnil Shah - Director - Of research at Stoxbox on TVS Motor's November sales said, "Results are below market estimates due to muted growth in 2-wheelers arising from weak performance of the international business."
According to the ICICI Securities report, TVS Motor reported a 23% MoM decline at ~277k units, up 2% YoY. Domestic 2W volumes dipped 31% MoM (up 9% YoY) at ~192k units while 2W exports improved 5% MoM to ~72k units. Overall 3W volumes at 13.5k units were down 14% MoM (down 9% YoY) with ~12k units exported (13% YoY less). On a sub-segment basis, motorcycle volumes shrank 12%, and scooter volumes 38% MoM. Moped volumes too fell 32% MoM to 37k units while iQube sales stood at an all-time high of 10k units.
Meanwhile, Reliance Securities note said, TVS Motor's outperformance in exports viz-a-viz Bajaj Auto indicates clear market share gain by company in key exports geographies.
In its investment picks report dated December 5, Axis Securities has set a buy rating on TVS Motor for a target price of ₹1,230.
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