Muhurat Trading 2025 – TVS Motor shares: Strong fundamentals and high valuation

TVS Motors stock is among the best performing stocks in 2025. Year to date in 2025, as on October 17^th, the stock has gained 51.03%. Nifty 50 index has gained 8.26% in this period. Nifty Auto index has gained 16.24% in this period. TVS stock is a constituent of Nifty Auto index, with a weight of 6.48%. So, TVS shares have outperformed the Nifty 50 index by around 42.77% in 2025. The stock has outperformed the benchmark Nifty Auto index by around 35% this year.

TVS benefits from lower GST rates

TVS with its portfolio of two-wheeler products has gained from the reduction in GST rates. The reduced GST rates came into effect on 22^nd September. GST on two wheelers with less than 350 cc engine capacity has been reduced from 28% to 18%. This has reduced the prices of top selling TVS products such as TVS Jupiter and TVS Apache. So the demand and sales of these products is very likely to increase in the foreseeable future.

TVS Motors’ EV product, TVS iQube is currently the top selling electric scooter in India. It sold 31,266 units of iCube in September, 2025. This was a year-on-year increase of 8% over the 28,901 units sold in September, 2024.

TVS’ strong competitive advantage in the two wheeler market in India

TVS is enjoying a very strong competitive advantage in the two-wheeler market in India. The current demographics of the country is favorable for TVS. Median age of India currently is around 28 years. Half the population of India  is of less than 28 years of age.  TVS’ two wheeler products are suitable for this young population, especially those living in urban areas. The increase in the participation rate of women in the workforce will also increase demand for TVS’ products. Many of TVS two wheelers such as TVS Jupiter and TVS Scooty are preferred by women.

Apache also seems to be doing well

The company is also doing well in the more male dominated motorcycle segment. It competes in that segment with the likes of Hero Motors and Bajaj Auto. In the month of September, 2025, sales of its Apache Motorcycles increased year-on-year by 17% to 218,928 units.

The current environment is one of high uncertainty. If a trade deal with US is not done, then it will have an adverse impact on Indian economy. Exports currently make up around 2% of the GDP of India. Many of the export oriented industries in India are labor intensive. A large number of employees working in these industries use two-wheelers. So if the economy slows down further then it may have some adverse impact on the sales of TVS products.

However, if a trade deal is done and domestic economic situation improves then it would have further positive impact on the demand for scooters and bikes of the company.  Demand may especially increase from rural and semi-urban areas.

TVS’ exposure to international markets

TVS also has exposure to the international market. In the month of September 2025, its sales in foreign markets stood at 122,108 units. This was a year-on-year (y-o-y) increase of 10% over its sales in September, 2024. A slowdown globally will also impact its exports.

TVS shares trading at a higher valuation than many of its peers in the industry

On 17^th October, 2025, TVS stock is up by 1.69%, trading at Rs 3,636.80. 52-week high price of the stock currently is Rs 3,652.10. 52-week low price of the stock is Rs 2,171. The twelve months trailing Price-to-Earnings (P/E) ratio that the stock is currently trading at is 72.45. That makes it an expensive stock. The high P/E ratio indicates that markets are expecting high growth from TVS in the foreseeable future. The average P/E at which stocks that make up Nifty Auto index are trading currently is 28.04. So TVS stock is more expensive when compared to some of its peers in the industry.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: NSE, TVS Motors