Eicher Motors share price : Post Q1 results, brokerage firms Jefferies, JP Morgan, Citi and Nomura have started coverage on this auto stock, recommending to buy it with inreasing the target price.
Eicher Motors share price : Indian stock market showed strength in the last trading week, with the Nifty 50 index gaining nearly 600 points. This implies a jump of more than 2.5% from the previous week. Currently, there is results season going on in the market and companies are reporting their quarterly results for the June quarter one by one after which different brokerage firms are giving their opinion regading investment in the company.
In this sequence, Eicher Motors Limited (NSE:EICHERMOT) also reported its June quarter results last week on July 29, after which four different brokerage firms have started coverage on the company and have given buy rating on its shares with increasing the target price. These brokerage firms include Jefferies, JP Morgan, Citi and Nomura.
In its June quarter results, Eicher Motors Limited reported a net profit (i.e., profit after tax) of ₹1,463 crores up 21% year-on-year as compared to ₹1,205 crores in the same quarter of last financial year. In this quarter, comapny’s revenue from operations also jumped 32% year-on-year to ₹6,632 crores. EBITDA grew 32% year-on-year to ₹1,591 crores but the EBITDA margins remained steady at around 24%.
In the June quarter, comapny has shown a strong operational performance seliing record 3,32,940 motorcycles which shows 27% surge. VECV sales also increased by nearly 15% to 24,815 vehicles. Also, board has approved to set up a new manufacturing plant in Tada, Andhra Pradesh investing nearly ₹1,225 crores.
Following the quarterly results, Jefferies has maintained its “BUY” rating on Eicher Motors’ share and raised its target (Eicher Motors share price target) from ₹8,800 to ₹9,300 per share. Citi has also maintained its “BUY” rating on the stock, raising its target from ₹8,350 to ₹8,850 apiece. JP Morgan has also maintained its “Overweight” rating on the stock, increasing its target from ₹7,700 to ₹8,420 while Nomura, maintaining its “Neutral” rating on Eicher Motors shares, also raised its target from ₹7,877 to ₹8,437 per share.
Eicher Motors shares have closed on ₹7,833.50 apiece level (Eicher Motors share price) on NSE on Friday, July 31 declining nearly 1 per cent from previous closing.
Disclaimer : The Buy recommendation regarding the aforementioned stock has been given by the brokerage firms mentioned and represent their views. These do not represent the personal views of the Financial World Online website. This article is for informational purpose only. This website does not recommend investing in any specific stock discussed here. Please do consult your qualified financial advisor before taking any investment related decision.