Shares of Chennai-based two-wheeler maker TVS Motor company on Monday climbed to 52-week high. The stock gained 1.6 per cent to Rs 314.3 even as the benchmark Sensex fell 1.5 per cent.
The rural push in the Union Budget has buoyed shares of companies focused on rural demand. TVS Motor derives around a fifth of its revenues from the rural market. Shares of TVS are up 18 per cent since the Budget, outperforming the Sensex which has gained around 9 per cent. In comparison, shares of Hero Motocorp have gained 14 per cent, Bajaj Auto has gained 7 per cent and Eicher Motors have added 3 per cent since February 29, the Union Budget day.
Recently, TVS and global auto major BMW had entered into partnership to launch bikes in the sub-500 cc category. In January, this year, Venu Srinivasan, chairman of TVS Motor said that the company is expected to see big growth in motor cycle sales this year. Overall the company hopes to close the fiscal with a market share of 15.5 per cent from the current 14 per cent and next year it hopes to increase to 18 per cent.
Future performance of the stock will depend on new product launches and favorable monsoon, analysts say. The stock currently trades above its consensus 12-month price target of Rs 279, complied by Bloomberg. The stock currently has 14 'buy' ratings and an equal number of 'sell' ratings.