Eicher Motors share price added 3% intraday to Rs 3,478.85 apiece before paring gains to trade mildly in the red, down 0.3%. On Thursday, the company reported a 50.38% on-year gain in consolidated net profit at Rs 918.34 crore for Q1FY24 compared to Rs 610.66 crore in the corresponding quarter last fiscal. The growth was primarily led by the increase in sales and price hikes. Brokerages offered mixed reviews on the scrip following its quarterly results. Eicher Motors shares have traded with volatility over the course of the past six months.
Should you buy, sell or hold Eicher Motor stock?
Motilal Oswal: Neutral – Target Price: Rs 3,600
“We upgrade FY24E SA EPS by 5%, primarily due to higher ‘other income’. However, for VECV, there was a margin miss, leading us to moderate the margin assumption for the CV business. We reiterate our Neutral rating on the stock with a Target Price of Rs 3,600 (Sep-25E based SOTP).”
Yes Securities: Buy – Target Price: Rs 4,008
“We expect RE’s overall volumes to grow at ~11% CAGR over FY22-25E (vs -7% CAGR over FY20-22), despite new competitive launches. Recent launches could be an inflection point for RE as a completely new and improved platform should drive efficiencies. VECV would continue to see a cyclical recovery in volume and profit, in turn boosting consolidated PAT CAGR to 23.3% over FY23-25E. Stock trades at 24.3x/21x FY24E/FY25E consol EPS. We maintain BUY with SoTP based revised Target Price of Rs 4,008 (v/s Rs3,939). We value S/A business at 25x (~15% discount to 10yr LPA).”
India Equity Research: Outperform – Target Price 4,030
“Going forward, increasing accessories revenue, expanding RE’s reach in the international market, expanding presence in underpenetrated markets (Tier II & III cities), and a healthy launch pipeline on the J-series will bode well for Eicher Motors to witness healthy growth in FY24-26. We roll forward our valuation to FY25E and maintain OUTPERFORM rating on the stock with a target price of Rs. 4,030 (22X FY25EEPS).”