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HomeMarket NewsTVS Motor shares gain after Goldman Sachs upgrade for up to 21% upside
Goldman Sachs said the upgrade reflects stronger volume visibility compared to peers, driven by upcoming premium launches such as the RR 300, RTX 450 and models under the Norton brand.
By Meghna Sen April 6, 2026, 2:50:06 PM IST (Published)
2 Min Read
Shares of TVS Motor Company Ltd. gained up to 3% on Monday, April 6, after brokerage firm Goldman Sachs upgraded the stock and raised its price target.
The brokerage upgraded the stock to 'Buy' from 'Neutral' and increased its target price to ₹4,100 from ₹3,830 earlier, implying an upside of about 21%.
Goldman Sachs said the upgrade reflects stronger volume visibility compared to peers, driven by upcoming premium launches such as the RR 300, RTX 450 and models under the Norton brand.
The brokerage added that TVS Motor is better placed to pass on raw material cost pressures, citing limited volume impact from metal and Brent crude inflation in previous cycles.
It also expects a 35 basis points margin tailwind from the PLI scheme by FY28 compared to FY26.
According to Goldman Sachs, key investor concerns around the stock include the broader two-wheeler demand outlook amid gas supply uncertainties, sensitivity of premium motorcycle demand to crude oil prices, potential export disruptions due to shipping route issues, and the margin impact from the Norton portfolio as well as aluminium inflation.
The brokerage's FY28 estimates for earnings per share and EBITDA are 3-6% above consensus.
It expects volume growth of 14%, 11% and 10% for TVS Motor in FY27, FY28 and FY29, respectively, compared to industry growth estimates of 7%, 7% and 5%.
This has led Goldman Sachs to revise its FY26-FY28 earnings per share estimates upwards by up to 8%.
It added that TVS Motor ranks among the top quartile volume growth beneficiaries within its India autos coverage universe, supporting potential upside to valuations.
As many as 31 out of 44 analysts tracking the stock have a 'buy' rating, while six recommend 'hold' and seven suggest 'sell'. The average 12-month price target stands at ₹4,008, indicating a potential upside of 15.4%.
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