TVS Motor Company has dipped 10% to Rs 35.80 on profit booking after the stock surged 25% in past four-trading days on the BSE. The stock opened at Rs 38.80 and hit a low of Rs 35.65 so far. A combined 5.06 million shares have changed hands on the counter till 1110 hours on BSE and NSE.
TVS Motor, the two-wheeler manufacture, has entered into a long term co-operation agreement with BMW's motorcycle division, BMW Motorrad to develop and produce new series of motorcycles that will cater to the sub 500cc segment.
The tie-up is expected to help TVS Motor expand its presence in the premium motorcycle space, where it currently offers the Apache (160cc and 180cc) series, says analyst at Angel Broking.
In the near term though, the analyst believe that this agreement is unlikely to alter the current positioning of the company in the domestic motorcycle industry.