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.
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.
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“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.
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