TVS Motor hits 52-week high after stock rises over 3%. Here's why

TVS Motor Company shares rose 3.5% and hit a 52-week high at Rs 1,384.5 in Monday's intra-day trade on BSE after the automaker's Singapore-based subsidiary purchased an additional 25% stake in Switzerland-based Swiss E-Mobility Group (SEMG).

"We wish to inform TVS Motor Company Limited’s subsidiary, TVS Motor (Singapore) Pte Ltd, has agreed to acquire an additional 25% stake in Swiss E-Mobility Group (Holding) AG (SEMG), Switzerland by way of purchase of shares from the existing shareholders," TVS Motor said in an exchange filing.

"SEMG is currently a subsidiary of TVS Motor (Singapore) Pte Ltd and the Company and consequent to the additional acquisition, SEMG will become a wholly owned subsidiary of TVS Motor (Singapore) Pte Ltd and also the Company," it said.


SEMG is a Swiss e-bike platform covering B2B and B2C businesses involving the sale of branded e-bikes from leading manufacturers directly to the end consumer, and the sale of branded e-biked to an attractive portfolio of B2B key accounts.

To build its foothold in the market, TVS Motor previously purchased a 75% stake in the e-mobility company through its Singapore subsidiary in 2022.

At 11.38 am, the stock was trading 0.2% higher at Rs 1,340.1 on BSE. On a year-to-date basis, the stock has surged 25%, while it has rallied 79% in the last year.

Brokerage firm Macquarie maintained an outperform rating on TVS Motor Company with a target price of Rs 1,418.

"Credit subsidiary fundraising was at a marginal premium to the estimated value. PI's investment could cap future TVS CS' capital requirement, which is positive for TVS' balance sheet," the brokerage firm said.

TVS Motor remains one of the top stock picks in Macquarie’s 2W space. it said.

In Q4 FY23, TVS Motor Company reported a 49.5% year-on-year (YoY) rise in net profit for the quarter ended March to Rs 410.27 crore. Its revenue from operations grew 19.4% YoY to Rs 6,605 crore. During Q4, the company sold 868,417 units compared to 856,446 units in the same period a year ago.

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