Eicher Motors soars 3% on better-than-estimated Q2

Auto major Eicher Motors' shares began Monday's session on a strong note after the Royal Enfield parent reported a better-than-expected set of quarterly results last week. Eicher Motors shares gained by as much as Rs 99.3, or 2.8 per cent, to Rs 3,676.3 apiece in early deals on BSE.

At 10:35 am, the stock held on to much of its intraday gains, changing hands 1.9 per cent stronger for the day at Rs 3,643 apiece on the bourse.

After market hours on Friday, the auto major posted a 55 per cent year-on-year jump in consolidated net profit to Rs 1,016 crore for the quarter ended September, better than analysts' expectations.

Zee Business analysts had estimated the auto maker's quarterly net profit at Rs 930 crore.

Eicher Motors' revenue came in at Rs 4,050 crore for the quarter under review, as against Rs 4,115 crore for the year-ago period. The company said its top-line and bottom-line numbers were its highest-ever in a quarter. 

Eicher Motors' EBITDA also came in at a fairly better level than estimates, registering 32 per cent year-on-year (YoY) growth.

Zee Business analysts had pegged the company's margin for the quarter ended September 2023 to come in at 25.7 per cent, up 240 basis points (bps) compared with the year-ago period. 

Royal Enfield sold 229,496 motorcycles in the September quarter, an increase of 13 per cent from 2,03,451 motorcycles sold over the corresponding period a year ago.

The research team estimated Royal Enfield's sales volumes to increase 10.4 per cent to 2.29 lakh units, driven by the Hunter motorcycle and easing of supply chain-related issues, with a 6.4 per cent rise in the motorcycle maker's realisations to Rs 1,73,900 per unit.

Global brokerages have made big upgrades on the counter post its Q2 show

Jefferies maintained a 'buy' rating on Eicher Motors after the auto maker announced its earnings, and raised its target price for the stock to Rs 4,650 from the earlier Rs 4,150.

CLSA also maintained a 'buy' call on Eicher with a raised target price. The brokerage's target stands at Rs 4,252, instead of the Rs 4,158 earlier.

Goldman Sachs continued with a 'buy' on Eicher with a target price of Rs 4,000, instead of the Rs 3,800 earlier.