TVS Motor Company shares surged 15 percent as the company's consolidated fourth-quarter net profit rose nearly fourfold year on year to Rs 319.19 crore.

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Robust sales in the domestic and international markets lifted quarterly revenue from operations nearly 50 percent year on year to Rs 6,131.90 crore

During the quarter, the company sold 9.28 lakh units--two-wheelers and three-wheelers--a rise of 47 percent over last year.

Brokerage firm CLSA said that TVS Motor's 4QFY21 results were significantly ahead of its expectations.

"While commodities continue to inch upwards, the company was able to mitigate the impact via price hikes and better mix (exports and scooters)," CLSA noted.

It increased FY22-23 EPS estimates 13-15 percent, and raised target price to Rs 665 per share from Rs 600 earlier and maintained an Outperform rating.

"While the stock continues to trade at a premium to its mass-market two-wheeler (2W) peers (50 percent over Hero Motocorp and Bajaj Auto), we believe this can continue due to share gains, higher EPS growth and improving FCF conversion," CLSA said.

At 10:25 am, the shares of TVS Motor Company were trading 14.48 percent higher at Rs 648.30 apiece on the BSE.

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First Published:Apr 28, 2021 11:10 AM IST