Shares of TVS Motors witnessed a remarkable surge of 3.65 percent on Monday, June 12, reaching an all-time high.
This surge was triggered by the announcement made by TVS Motor (Singapore) Pte, a subsidiary of TVS Motor, regarding their agreement to acquire an additional 25 percent stake in Swiss E-Mobility Group (Holding) AG, also known as SEMG, a prominent Swiss-based company operating in the electric mobility sector.
Following the anticipated transaction valued at ₹180 crore, SEMG is expected to transform into a fully-owned subsidiary of TVS Motor Singapore.
During Monday’s trade, the stock opened at a price of Rs. 1,368 per share against the previous close of Rs. 1,336 per share and grew further during the early trading session to touch an all-time high price of Rs. 1,384.80.
However, it failed to hold onto this rally and was trading at ₹1,340.65 apiece, up by 0.35 percent, at 11:30 a.m. on the NSE.
The stock touched a 52-week low of Rs. 722.95 on June 20, 2022, indicating that at the current price, it is trading over 85.4 percent above that level.
The stock has grown almost 29 percent in the last six months. Moreover, in the last one year, it has yielded a return of over 78 percent. In the past five years, it has gained nearly 130 percent.
According to a statement by TVS Motor, SEMG currently operates as a subsidiary of TVS Motor (Singapore) Pte Ltd, engaging in e-bike activities including B2B and B2C sales of their own branded electric bikes.
In a previous acquisition in 2022, TVS Motor had acquired a 75 percent stake in SEMG through its Singapore subsidiary, aiming to establish its presence in the e-mobility sector. Once the acquisition of the remaining 25 percent shares from existing minority shareholders is finalized, SEMG will become a fully-owned subsidiary of TVS Motor (Singapore) Pte Ltd.
TVS Motor experienced a sales growth of 9% in May 2023 compared to May 2022, with total two-wheeler sales increasing by 11%. Domestic two-wheeler sales saw a significant growth of 32%. Motorcycle sales increased by 9%, while scooter sales grew by 3%.
The electric vehicle segment, represented by TVS iQube, saw a remarkable surge in sales, reaching 17,953 units in May 2023. However, international exports and three-wheeler sales witnessed a decline in May 2023 compared to the previous year.
TVS Motor Company is a two and three-wheeler manufacturer globally, championing progress through Sustainable Mobility with four state-of-the-art manufacturing facilities in Hosur, Mysuru and Nalagarh in India and Karawang in Indonesia, its website shows.
According to a MintGenie poll, 38 analysts on average have a ‘BUY’ call on the stock.