TVS Motor Enters ₹1 Lakh Crore Market Cap Milestone

TVS Motor, a leading two-wheeler manufacturer in India has crossed the ₹1 lakh crore market capitalization mark in yesterday's trade. The company's shares reached a new peak at ₹2,108.95 apiece. Over the past year TVS Motor's market capitalization has surged by ₹53,000 crore.

TVS Motor's shares have been on a consistent upward trend starting in April last year and continuing through December. During this period the shares have risen from ₹1,077 to ₹2,025, reflecting a gain of 88%. Looking at the long-term the shares have witnessed a gain of 210% in the last two years and an astonishing 292% in the last three years. Since April 2020 the stock has delivered an outstanding return of 747%.

December Sales Snapshots

The company recorded a surge in sales in December indicating a recovery in the rural economy. Monthly sales figures for December 2023 reached 301,898 units a 25% growth compared to 242,012 units in December 2022.

Overall two wheeler segment shows growth with a 27% increase reaching 290,064 units in December 2023 compared to 227,666 units in December 2022.

Domestic two wheeler market registered a 33% increase with sales climbing from 161,369 units in December 2022 to 214,988 units in December 2023.

TVS Motor sold 11,232 units of Electric Vehicles in December 2023 surpassing the sales of 11,071 units in December 2022.

Global Exports

On the global front, the company's total exports displayed an 8% growth reaching 85,391 units in December 2023 compared to 79,402 units in the same period last year.

Two wheeler exports registered a growth of 13% with sales increasing from 66,297 units in December 2022 to 75,076 units in December 2023.

Recent Development

TVS Motor Company has recently partnered with the Tamil Nadu government formalizing a Memorandum of Understanding during the Tamil Nadu Global Investors Meet 2024 in Chennai. In this collaboration TVS Motor commits to investing ₹5,000 crore over the next five years aiming to generate job opportunities for 500 individuals with support from the state.

Final Word

The company's stock has had quite a ride in the past year hitting a high of ₹2085 and a low of ₹968 on January 20, 2023. Right now it's trading 2.70% below its highest point and 105.7% above its lowest. Looking at the technical side the stock is on an uptrend and is getting close to its short-term peak. RSI is at a high 90 signaling that the stock is in the overbought zone. If you're thinking about investing it might be a good idea to wait for the stock to cool down a bit before jumping in.