Shares of TVS Motors gained 4% on Wednesday morning after the company reported in-line results for the June quarter. 

What Happened: TVS Motors reported a 23% year-on-year jump in net profit to ₹577.32 crore, while revenue from operations gained 16.03% from the previous year to ₹8,375.59 crore. EBITDA margin rose to 11.5% from 10.6% in the previous year.

The results were mostly in line with analyst expectations of ₹577.2 crore net profit, ₹8,392.88 crore revenue and EBITDA margin of 11.32%. The company's overall sales grew 14% to 10.87 lakh units in the quarter.

See Also: PFC Shares Zoom 4% As Brokerages Remain Bullish Over Strong Guidance

Brokerage Views: Jefferies had a "buy" call on TVS Motors with a target price of ₹3,000. The company would be a beneficiary of two-wheeler demand revival in both domestic and export markets, the brokerage said.

An improved franchise model should also drive continued margin expansion, it added. The company has three product launches in India slated for the second half of the calendar year 2024 and a model from Norton, its UK-based unit, is expected to launch by the end of the calendar year 2025.

The brokerage also expects TVS’ earnings per share to double over FY24-27.

Macquarie also had an "outperform" call and raised the target price to ₹2,783. The company’s Q1 gross margin was a positive surprise, with EBITDA margin growing to 11.5%, the highest ever for the company and in line with estimates, the research firm said.

It also noted the multiple new launches for the company in the second half of FY25. From a free cash flow standpoint, the brokerage said eyes should be on investments in key subsidiaries. 

Nuvama also maintained "buy" call and hiked the target price to ₹2,870. Nuvama expects a revenue and EBITDA annual growth rate of 11% and 21% over FY24-27, building on the early stage of an upcycle in two-wheelers, TVS's market share gains in domestic and overseas markets and aggressive electric vehicle focus.

Price Action: Shares of TVS were up 4.72% to ₹2,595.75 on Wednesday morning. 

Read Next: PolicyBazaar Parent Gains On Swing To Profit, Analysts Give Tech Firm Thumbs Up