Shares of TVS Motor Company rose over 7 percent on Friday after the auto firm's results beat analysts' estimates in the September quarter. The firm reported a rise of 6 percent in sales in Q2 at Rs 5,254 crore and the operating profit was also up 19.51 percent at Rs 528 crore.

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However, the firm posted a 29.37 percent decline in consolidated net profit at Rs 181.41 crore for the quarter under review. The company had posted a net profit of Rs 256.88 crore in the July-September period of the previous fiscal.

The stock rose as much as 7.4 percent to the day's high of Rs 453.50 per share on BSE.

Despite COVID-19 challenges, the company strengthened its supply chain during the second quarter of the current fiscal, it added. The production and sales improved consistently from July onwards, the company said.

In July, the company sold 2.44 lakh units, which rose to 2.77 lakh units in August. In September, sales further improved to 3.13 lakh units.

Brokerages, however, remain mixed on the stock post-earnings. Citi has maintained a 'sell' call on the stock with a target at Rs 360 per share. It is cautious on the margin given elevated competition and cost headwinds.

Citi added that valuations of the stock are significantly above those of peers and that the firm's profit is more vulnerable if there is an increase in commodity costs.

Meanwhile, CLSA upgraded the stock to 'outperform' and raised its target to Rs 460 per share from Rs 435 earlier. TVS Motor 2QFY21 results were better than expectations due to robust management of staff and marketing expenses, it said.

"TVS has underperformed peers such as Hero by 28 percent YTD and we believe the risk-reward is now turning favorable. While the stock continues to trade at a premium (60 percent over Hero) we believe this could continue due to significantly higher EPS growth during the past decade as well as higher near-term growth," the brokerage stated.

It also increased FY21-23 EPS estimates by 5-7 percent on better-expected mix and costs.