TVS Motor Share Price Hits New 52-Week High: Buy, Sell, or Hold?

Rajesh
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TVS Motor Company, a prominent automobile company, achieved a significant milestone as its share price reached a new 52-week high. This article explores the reasons behind this surge and provides insights for potential investors on whether to buy, sell, or hold TVS Motor shares.

TVS Motor Share Price Hits New 52-Week High: Buy, Sell, or Hold?


TVS Motor's Impressive Performance:

TVS Motor Company, with a market capitalization of Rs 63,661.67 Crore, concluded Monday's closing session on a high note. The stock opened on the National Stock Exchange (NSE) at Rs 1,368 apiece and soared to a fresh 52-week high of Rs 1,384.80 during afternoon trading. Ultimately, it closed at Rs 1,339.95 per share, exhibiting a 0.30% upside gap from the previous day's close.

Key Acquisition Boosts Investor Sentiment:

TVS Motor's Singapore-based subsidiary recently acquired an additional 25% stake in Swiss E-Mobility Group (SEMG) for Rs 176 Crore. This strategic move contributed to a 4% increase in TVS Motor Company shares, propelling them to a new 52-week high during Monday's intraday trading. The acquisition involved the purchase of 38,217 common equity shares of SEMG at a price of 517.36 Swiss Francs per share.

Positive Outlook from Experts:

Rahul Ghose, Founder & CEO of Hedged, an algorithm-powered advisory platform, commented on TVS Motor's prospects. He suggested that investors holding the stock should consider booking one-third of their position at the current level if they have gained over 25%. Ghose highlighted that the stock has entered a zone slightly above its fair value. However, for fresh investors, he recommended considering an entry point, as the stock is aligning with the Bollinger Band on the medium and long-term charts at the 1280-85 level, with a stop loss at 1235. This range coincides with the 20-day exponential moving average.

Sonam Srivastava, smallcase manager & Founder of Wright Research, emphasized the positive factors driving TVS Motor's share price. These include a 49% year-on-year increase in net profit for Q4 FY23, amounting to Rs 410.27 Crore, and a 23% YoY rise in revenue to Rs 7,275.45 Crore. Srivastava also highlighted strong investor sentiment, growing domestic demand for two-wheelers, and the company's expansion plans overseas. However, potential investors should consider factors such as high valuation, increasing competition in the two-wheeler segment, and raw material price fluctuations. Despite trading at a premium, TVS Motor's solid fundamentals suggest potential for future growth. Holding the stock is recommended for now, with buying opportunities potentially arising during market dips.

Conclusion:

TVS Motor Company's share price reached a new 52-week high driven by its strong performance and recent acquisition. While existing investors may consider booking profits, fresh investors can explore entry points given the stock's alignment with the Bollinger Band. The company's impressive financial results, positive investor sentiment, and expansion plans contribute to its potential for future growth. However, investors should carefully consider factors such as valuation and industry competition. Overall, holding TVS Motor shares is recommended, with opportunities to buy on market dips.

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