Eicher Motors reports better-than-expected Q1 results: Should you buy, hold or sell it?
Eicher Motors for the June quarter reported improved earnings better-than-estimates. For the reporting quarter, the company's consolidated net profit came in at Rs 1,101 crore, up 19.9 per cent compared with the corresponding period a year ago.Its revenue increased 10.2 per cent on a year-on-year basis to a record Rs 4,393 crore, according to a regulatory filing.
Here's how global brokerage view the stock to perform after its Q1:
Jefferies target suggest potential upside of 20 per cent
Jefferies continued with its buy rating on the counter but slashed the target to Rs 5,500 from the earlier Rs 6000. This suggests a gain of over 20 per cent. The brokerage held that the recent slowdown in the Royal Enfield volumes is a concern. It said that the company should benefit from 2-wheeler premiumisation.
Goldman Sachs target post Q1 suggest 22 per cent potential gains
Goldman Sachs also continues with its buy rating but raised the target to Rs 5600- an over 22 per cent potential gains from the last close. The brokerage said the launch of Guerrilla as well as the upcoming new Classic represent upside optionality. VECV is also entering a period of lower taxes which adds ~2% to
earnings power, it added.
JP Morgan sees some potential losses
JP Morgan maintained neutral call on the stock with a target of Rs 4,435, suggesting a potential downside of over 3 per cent. The margin beat at the company has been driven by pricing, it added. The company's management expects improvement in flagship models.
Cit maintains buy view
Citi maintained by on Eicher Motors with the reduced target of Rs 5,250 per share. This means an upside of 16 per cent.