Eicher Motors quarterly results impact on share price: Stock hits new 52-week high on steady Q1 earnings; Buy, Sell or Hold – brokerages recommend this

Eicher Motors quarterly results: Eicher Motors share price on Thursday touched a new 52-week high of Rs 3260.85 and Rs 3265.95 apiece on the BSE and NSE intraday, respectively. The stock surged by around 3.5 per cent to become the top Nifty50 gainer at the opening.  

The auto major reported in-line earnings in the first quarter of the financial year 2022-23 (Q1FY23), as per most of the brokerages. 

Kotak Institutional Equities said that Eicher Motors reported steady quarterly results and all eyes will be on new launch Hunter 350’s performance. The newly launched Hunter 350 and raw material tailwinds will drive near-term volume and earnings growth for the company, said the brokerage.  

Kotak expects demand for the company’s core portfolio (excluding Hunter 350) in the domestic market to remain under pressure due to high upfront cost and cannibalization from the launch of Hunter 350. It maintained SELL rating with a target price of Rs 2,580 per share. 

Expecting upgrade demand to partly drive sales of Hunter 350, Kotak sees cannibalization of Bullet, Classic and Meteor volumes and its channel checks indicate muted demand for the existing portfolio due to affordability issues. 

Even for Nirmal Bang, the auto company reported In-line performance and it said that the new launches and exports to drive volume growth. It values RE (standalone) at 25x Sept’24E EPS and VECV at 12x EV/EBITDA on Sept’24E to arrive at a target of Rs 3,446 apiece with a Accumulate rating. 

Nirmal Bang expects demand to remain strong and drive volume growth going ahead in both domestic as well as export markets, leading to 17% volume growth over FY22-25E and also factor in margin recovery of 420bps over FY22-24E. 

At around 09:50 AM, the stock was trading nearly 2 per cent higher on both BSE and NSE at Rs 3216 and Rs 3210 per share, respectively, as compared to nearly 1 per cent rise in both Sensex and Nifty50.