The TVS Motor stock has moved up by almost 5 per cent so far today. The immediate trigger is the news that the company plans to launch several new models/variants in 2014-15 to increase its domestic market share (by 200 bps to 14 per cent) and is expanding its export markets. But the interest in this stock is not newfound. It has been a market favourite for quite sometime now, gaining more than 300 per cent since the September 2013 lows. With FIIs more than doubling their stake in the stock in the last three quarters, FII buying has also been a major reason for the stock’s sprint.

Amidst a downturn in the domestic auto industry, TVS managed to achieve a healthy topline growth of 11 per cent and a 44 per cent growth in net profit in 2013-14. Although motorcycle sales were laid back, support came from good sales volumes for its new scooter Jupiter and the company’s export markets. Besides, price hikes and tighter control over input costs have helped the company bring back its operating margins back to the 6-7 per cent levels it normally achieves. The company’s profit also received a boost from a sharp drop in interest costs compared with the previous year. It expects to be free of long-term debt by the end of 2014-15.

The company’s domestic sales volumes increased by 23 per cent in June 2014, over the previous year. Though poor monsoons may bring less than expected growth over the next few months, its scooters, the recently launched TVS Star City + and upcoming launches in the executive bikes (125cc) segment will hold interest.