Eicher Motors Records New 52-Wk High on Stellar Q1 Show; Outlook & Targets?

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Eicher Motors Records New 52-Wk High on Stellar Q1 Show; Outlook & Targets?
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Shares of the auto major Eicher Motors (NS: EICH ) surged over 3% on Thursday and hit a fresh 52-week high of Rs 3,265.95 apiece, following a strong earnings show for the June 2022 quarter.

The iconic motorcycle Royal Enfield’s manufacturer posted a 157.5% YoY jump in consolidated net profit at Rs 610.66 crore in Q1 FY23 and a 71.2% YoY surge in consolidated revenue at Rs 3,325.8 crore.

Its sharp growth uptick was led by a rise in the exports segment, an increase in the volumes of Royal Enfield, and a higher average realisation, resulting from a price hike undertaken during May 2022.

Most brokerages continue being bullish on the stock, with CLSA raising its target price to Rs 3,763/share, pegging an 18.4% upside compared to the current price, on better results than its two-wheeler peers.

"We remain positive on Eicher's business prospects, owing to healthy growth and model launches. We expect exports to clock 17% CAGR over FY22-24E, aided by entry into new markets and market share gain in the existing markets. We expect exports to be one of the key growth drivers for Eicher over the medium term,” stated analysts at Nirmal Bang Institutional Equities.

Jefferies has raised its target price by almost 6% to Rs 3,700/share, as Eicher Motors’ Q1 EBITDA jump of 10% QoQ exceeded its estimate, while the brokerage sees multiple positives for RE going ahead. It sees the company’s EPS more than doubling over FY22-24, cited CNBC TV-18.

Read Also: Eicher Motors Q1: Net Profit, EBITDA Rally Upto 158% YoY; Topline Jumps 71.2%

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