Shares of TVS Motor Company rose for the third straight day on Friday, as CLSA raised its target price on the stock following the two-wheeler maker’s Ronin launch. The brokerage firm has given a buy rating to the automaker’s stock and raised its target price to Rs 922, which implies an upside of 11 percent from the stock’s closing price of Thursday.

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TVS Motor shares rose 1.4 percent intraday and were trading 1.1 percent higher at Rs 834.95 on BSE at 2:30 pm. In 2022 (year-to-date) the stock has increased investors’ wealth by more than 32 percent.

CLSA said the launch of Ronin, which has the latest features to attract young buyers, marks TVS Motor’s entry into the cruiser motorcycle segment. It has raised its volume and earnings estimates following the launch. The brokerage firm is of the view that the company is gaining market share on the back of strong launches.

This is TVS Motor's second attempt to make a dent in the premium motorcycle market with a 'modern retro' product TVS Ronin.

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Earlier this week, Amit Hiranandani, lead analyst, SMIFS Institutional Research, told CNBCTV18.com, “TVS’s previous premium motorcycle RR310 did not take off as per the expectations and RONIN will be TVS Motor’s second attempt to enter the premium motorcycle segment,”

"If customers accept it well, TVS could gain the much-required market share in motorcycles," he said, adding he was positive on the TVS Motor stock but believes all near-term positives look factored in.

TVS Motor Company launched three variants of the Ronin 225cc premium motorcycle. The ex-showroom price starts from Rs 1.49 lakhs to Rs 1.69 lakhs. This motorcycle is likely to compete with Royal Enfield’s range of bikes including the upcoming Hunter 350cc, along with Honda CB350, Jawa, and Yezdi.

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Ronin 225cc will bridge the portfolio gap for TVS Motor Company. As per the reports, the company is planning to produce about 10,000 units per month. In addition, it is likely to export to ASEAN, Latin America, and West Asian markets.

TVS Motor Company is a two- and three-wheeler manufacturer, with four manufacturing facilities in Hosur, Mysuru, and Nalagarh in India and Karawang in Indonesia.

The company registered a year-on-year growth of 22 percent in June sales at 3,08,501 units, the firm said in a press release issued on July 1. There were 2,93,715 two-wheelers sold in June, an increase of 23 percent. Domestic two-wheelers increased by 33 percent to 193,090 units. Motorcycles sold 1,46,075 units compared to 1,46,874 a year ago, while scooters sold 105,211 units.

First Published:Jul 7, 2022 4:06 PM IST