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

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

We would like to inform you that TVS Motor Company Limited's subsidiary, TVS Motor (Singapore) Pte Ltd, has agreed to purchase an additional 25% stake in Swiss E-Mobility Group (Holding) AG (SEMG), Switzerland, through share purchases from existing shareholders," TVS Motor stated in an exchange filing.

SEMG is currently a subsidiary of both TVS Motor (Singapore) Pte Ltd and the Company, and as a result of the additional acquisition, SEMG will become an entirely owned subsidiary of both TVS Motor (Singapore) Pte Ltd and the Company," the company stated.

SEMG is a Swiss e-bike platform that specializes in B2B and B2C sales of branded e-bikes from major manufacturers to end users, as well as sales of branded e-bikes to an attractive portfolio of B2B key accounts.

TVS Motor previously obtained a 75% share in the e-mobility company through its Singapore subsidiary in 2022 to strengthen its market position.  At 11:38 a.m., the stock was trading 0.2% higher on the BSE, at Rs 1,340.1. The stock has increased by 25% year to date, and it has increased by 79% in the last year.

TVS Motor Company is still rated outperformed by brokerage company Macquarie, with a target price of Rs 1,418.

"Credit subsidiary fundraising came in at a slight premium to the estimated value." "PI's investment may limit future TVS CS capital requirements, which is beneficial to TVS' balance sheet," the brokerage firm stated. TVS Motor is one of Macquarie's top stock recommendations in the 2W sector. It stated.

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