Benzinga – Shares of Eicher Motors (NS:) have been up on Wednesday after the two-wheeler maker posted better-than-expected third-quarter outcomes, however brokerages issued warning calls and muted the goal costs, citing persistent competitors within the premium phase.
What Occurred: Within the third quarter, the maker of the Royal Enfield bikes reported a 34.43% year-on-year surge in consolidated web revenue, reaching ₹995.97 crore, largely aided by a mix of upper volumes and worth hikes throughout its product strains.
The corporate’s income from operations grew 12.28% to ₹4,179 crore within the third quarter, whereas working margins surged to 26.08% from 23.03%.
What Analysts Say: World brokerage Morgan Stanley (NYSE:) is “underweight” on the counter and has assigned a goal worth of ₹3,209. This means a draw back potential of 17% from the final shut of ₹3,854. The analysts mentioned that although the corporate posted an excellent set of numbers, slowing progress and larger aggressive pressures supported its “underweight” ranking.
Nomura has assigned a “impartial” name on the Eicher inventory and a worth goal of ₹3,769, suggesting a draw back of about 2% from the final shut. Slowing retail and rising competitors might harm the inventory extra in FY25, analysts on the agency mentioned. Nomura additional added that the success of recent launches can drive up the typical promoting costs additional.
However, Jefferies has a “purchase” name and a worth goal of ₹4,900 on the inventory, reflecting an upside potential of over 27%. The brokerage believes the corporate ought to profit from potential two-wheeler demand restoration and premiumisation. Nonetheless, Jefferies additionally acknowledged that its gross sales might be see competitors from Hero MotoCorp’s Harley Davidson and Bajaj Auto’s Triumph.
Value Motion: Eicher Motors’ share worth was up 0.53% at ₹3,874.45 round midday on Wednesday.
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