Eicher Motors Limited is a leading key player in the Indian automobile industry. Eicher Motors owned the popular brand in the 2-wheeler segment, “Royal Enfield.” Royal Enfield is a well-known bike in the Indian market. Eicher Motors earns 86.41% of its revenue from the two-wheeler segment, 7.22% of its revenue from spare parts and other components, 5.81% of its revenue from accessories and other allied products, and the rest, 0.56% of its revenue, from other sources.
Eicher Motors earns 87.98% of its business from the Indian market and the rest, 12.02%, from the international market.
Share Price
Eicher Motors share price jumps up 8% after announcing its Q2 FY 2025 results. The share price of Eicher Motors was trading at Rs 4,588.70 in the last trading session on 13 Nov 2024. Eicher Motors share price rallied after the company posted stronger-than-expected Q2 FY25 results, which beat street estimates.
The 52-week low of Eicher Motors was Rs 3,562, and the 52-week high was Rs 5,105.
Quarter 2 Results
- In Q2 FY25, Eicher Motor’s profit rose over 8 percent year-on-year (Y-o-Y) to Rs 1,010 crore, as against Rs 1,016 crore in the same quarter a year ago (Q2 FY24).
- The company’s revenue from operations climbed 7 percent annually to Rs 4,617 crore in Q2 FY25, from Rs 4,388 crore in the same quarter last year (Q2 FY24).
- On the operating front, earnings before interest, taxes, depreciation, and amortization (EBITDA) soared 5 percent annually to Rs 1,442 crore in the September quarter of FY25, from Rs 1,373 crore in the September quarter of FY24.
- Royal Enfield recorded sales of 2.25 lakh bikes as compared to 2.29 lakh units sold during the same period in FY24.
Eicher Motors expects demand trends to improve in the second half of the year, supported by conditions and government investments in rural economies. It aims for double-digit revenue growth and enhanced margins, focusing on market share gains and expansion in the electric mobility sector with a new brand, “the Flying Flea,” alongside international growt
Stock performance
Eicher Motors Limited has given 25.88% returns to its investors in the last year, 68.52% returns in the last 3 years, and 115.19% returns in the last five years.
| Time | Return |
|---|---|
| 6 Months | 6.40% |
| 1 Year | 25.88% |
| 2 Year | 32.74% |
| 3 Year | 68.52% |
| 5 Year | 115.19% |
What do brokerages say?
According to brokerage firm Goldman Sachs, Eicher Motors guides for double-digit sales growth in FY25 and maintains a buy rating on the stock with a target price of Rs 5,400.
According to Goldman Sachs, “Quarter 2 was in line, and the company represents good risk reward. Goldman is eyeing new product-launched models at Eicher.
- Trade Times Target Price: Rs. 5,550
- Upside Potential: 11%
- CMP: Rs. 4913
Novuma has upgraded the stock to a buy rating for Eicher Motors from an earlier rating while increasing the target price to Rs 5,500 from Rs 4,500.
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Disclaimer: I am not a SEBI-registered investment adviser or research analyst. The information shared is only for educational purposes. This is not investment advice.