Eicher Motors’ share price surged 5%, making it the top gainer in the Nifty 50, following the company’s impressive Q1 results that exceeded market expectations. The stock reached an intra-day high of Rs 4,839.90 on the NSE, reflecting a jump of 5.43%.
Brokerages on Eicher Motors
Jefferies on Eicher Motors
According to a recent report by Jefferies on Eicher Motors, the firm has maintained a ‘Buy’ rating with a target price of Rs 5,550. While the recent weakness in Royal Enfield volumes is noted as a concern. However, Jefferies has cut its FY25-27 EPS estimates by 2-4%.
Jefferies highlights that Eicher Motors should be a key beneficiary of the ongoing premiumisation trend in the two-wheeler segment. The report also suggests that the toughest phase of competition is now behind the company.
UBS on Eicher Motors
In its latest report on Eicher Motors, UBS has maintained a ‘Buy’ rating with a target price of Rs 5,820. The firm noted Eicher Motors’ strong Q1 performance and highlighted management’s confidence in a volume recovery.
The report emphasized that Royal Enfield continued to deliver good operational performance in Q1 FY25. UBS also believes that product and marketing initiatives should support Royal Enfield in reviving domestic volumes.
Goldman Sachs on Eicher Motors
Goldman Sachs has maintained a ‘Buy’ rating while raising the target price to Rs 5,600 from Rs 5,400. The report highlights the upside potential from the recent Guerrilla launch and the upcoming new Classic model.
Goldman Sachs also notes that export volumes for Royal Enfield are expected to benefit from the Guerrilla launch. Additionally, VECV is entering a period of lower taxes, which is projected to add 2% to the company’s earnings power.
JP Morgan on Eicher Motors
JP Morgan has maintained a ‘Neutral’ rating while raising the target price to Rs 4,435 from Rs 4,230. The report attributes the margin improvement to strategic pricing actions.
JP Morgan also anticipates gradual improvement in the VECV business over the course of the year. Additionally, the management expects enhancements in the performance of flagship models.
Investec on Eicher Motors
Investec has maintained a ‘Sell’ rating while raising the target price to Rs 3,910 from Rs 3,850. The report highlights an operational beat, with margins benefiting from a favorable product mix and soft commodity prices.
However, Investec cautions that with competition intensifying in the premium two-wheeler segment, Royal Enfield’s growth is expected to slow down. The valuation appears rich, and Eicher Motors has been identified as Investec’s quarterly Alpha sell idea.
Stock Performance in Last One Year
Eicher Motor shares have demonstrated positive returns across multiple time frames. Over the past three month, the stock has given a commendable 4.73% return, showcasing its stability and growth potential. The last six months have seen even more impressive results, with a substantial increase of 34.45%, indicating a strong upward trend.
Year-to-date, Eicher Motor shares have surged by 18.40%, reinforcing the stock’s positive momentum in the current fiscal year. Looking at the broader picture, the stock has delivered an impressive return of over 40.12% in the last twelve months, emphasizing its sustained growth and attractiveness to investors.