Why Royal Enfield Parent Eicher Motors' Shares Are Trading 4.5% Higher Today
Take Stock Of The Week Ahead

Get all the latest Share Market trends and news to set you up for the week ahead.

Congratulations!
You have successfully subscribed.

Eicher Motors shares surged 3.8% on Wednesday after the company beat analysts’ Q3 earnings estimates, recording a 62% growth in year-on-year consolidated net profit.

What Happened? Eicher Motors on Tuesday reported a 62.41% surge in consolidated net profit at ₹740.84 crore for the quarter that ended December 2022 from ₹456.13 crore a year ago. The revenue from operations came in at ₹3,721 crore, registering a growth of 29.17% from ₹2,880.65 crore in the corresponding quarter last year.

Per a report by HDFC Securities by Aniket Mhatre, Eicher Motors Q3 earnings beat estimates, largely due to higher-than-expected other income and improved performance at its joint venture with Volvo for commercial vehicles.

The analyst has reiterated its call to ‘add’ with a revised price target of ₹3,351, down from ₹3,859 earlier.

See Also: Hero MotoCorp Analyst Bullish Even As Shares Continue To Slump

The analyst also lauded Eicher’s Royal Enfield for the launch of the Hunter which has seen the brand attract a lot of new users including women bikers.

“With the launch of the Hunter, RE is now rebalancing between growth and profitability and aims to make its product more accessible to customers,” states the HDFC Securities update.

“While exports are likely to remain weak in the near term due to geopolitical concerns, in the long run, we expect them to evolve into a strong growth story. Given the better-than-expected volume pick-up in Q3, we have raised our forecast for FY23 by 5.5%,” added the report.

Price Action: Eicher Motors shares were trading 4.38% higher at ₹3,313.75 on Wednesday afternoon.

Read Next: Ashok Leyland Shares Jump 3% After Q3 Earnings

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Comments
Loading...
Eicher MotorsHDFC SecuritiesQ3FY23Royal EnfieldVE Commercial Vehicles