Curated By: Business Desk
Last Updated: December 06, 2023, 15:00 IST
Eicher Motors manufactures commercial vehicles and motorcycles.
Eicher Motors shares witnessed a rise of 18.25% in the month of November marking the highest gain in a month in the last 3 years.
Eicher Motors, a company that manufactures commercial vehicles, motorcycles and engineering components, has given significant returns to investors in recent months. Shares of the maker of Royal Enfield motorcycles have gained nearly 25% in the last three months and 15% in the past one month.
The automobile stock surged 8% to hit an all-time high of Rs 4,200 per share on Monday, December 4, riding on robust sales in November. Shares of Eicher Motors are currently trading 4.27% below the all-time high price.
The rally in share price of the company that makes the famous Bullet motorbikes was seen after strong sales figures in November. Eicher Motors shares witnessed a rise of 18.25% in November, marking the biggest gain in a month in the last 3 years. The foreign brokerage firm Jefferies had set a target of Rs 4,150 on the shares of Eicher Motors in September. The company has achieved the target price in a meagre 3 months.
Eicher Motors released the sales figure for its auto sales for November on Friday, December 1. The figures show that the sales of models with engines up to 350cc were recorded at 74,275 units. There has been a growth of 13% year-on-year in the total sales in this segment. On the other hand, the sales of models with engines more than 350 cc witnessed a surge from 4,810 units to 5,976, marking an increase of 24% YoY.
However, Eicher Motors stock has relatively underperformed when compared with the Nifty Auto Index year to date. While the Nifty Auto index rose 40% so far this year, shares of Eicher Motors rose nearly 25% so far in 2023.
Meanwhile, brokerage CLSA has downgraded the Eicher Motors stock to ‘underperform’ from ‘buy’ earlier due to concerns over valuation and rising competition for Royal Enfield motorcycles. Commenting on two-wheeler stocks in its note, the brokerage said that the upside in these stocks has reduced due to the recent rally and hence the downgrade, reported CNBCTV18.
The brokerage has set a target price of Rs 4,129 per share for Eicher Motors, indicating a 1.7% downside from the Tuesdays’ closing price of Rs 4,136.25 apiece on BSE.
CLSA downgraded two-wheeler makers Bajaj Auto, Hero MotoCorp and Eicher Motors on December 6.
Shares of Eicher Motors were trading 2.62% lower at Rs 4,028 apiece on BSE at 1:07 PM.
