Is TVS Motors a Long Term Investment?

TVS Motors is legit killing it. The stock is up +54% in the past year vs just an 18% gain for the Nifty Auto Index. We know what you're thinking: what the hell is going on here? The answer is simple – they're outselling everyone! India's third largest two-wheeler maker sold an all-time high of +10 lakh units in Q2. Strong demand for new launches, pick up in exports and the festive season boosted overall sales. 

TVS was not affected by the slowdown in the entry-level segment and has consistently gained market share, which is a huge positive. 

TVS has also witnessed tremendous growth in its EV business. They launched their first-ever electric scooter the iQube in January 2020. In less than two years, they're selling over 10,000 units per month and control nearly 11% of the market. That's insane! Going forward, 

TVS will invest north of Rs 1,000 cr to extend its family of electric scooters and aims to sell 25,000 units per month by March next year. In case they manage to achieve this target, it will make iQube India's #1 EV two-wheeler brand. Reports of large private equity firms investing in their EV business plus recent inclusion in the MSCI India Global Standard Index added fuel to the fire. 

 PS- Global brokerage firm UBS has a target price of Rs 1,335 per share; +28% from current levels. Watch out for this one! 

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