Two -wheeler and commercial vehicle veteran Eicher Motors’ share reached its highest level of Rs 5,715 in Thursday’s trading session due to a strong commercial scenario. In the last five days, the stock rose by about 8.5 per cent and in Thursday’s trading, it gained 1.1 per cent to close at Rs 5,678.
The strong performance of the premium motorcycle market giant is better than its competitive group as well as benchmarks. In the last 6 months, the stock has given a 19 per cent return, while the Nifty Auto weakened by 15 per cent, which is a difference of 34 per cent. Similarly, in the same period, it has surpassed the Nifty 50 behind by a margin of 23 percent. The difference of better performance in other time periods from one month to one year is between 10 percent to 30 percent.
In FY 2025, Eicher Motors’ Royal Enfield (two -wheeler segment) recorded a strong sales of 1 million vehicles and gained 10.6 per cent on an annual basis. In this, the 350 cc segment sales increased by 40 per cent to 141,000 vehicles on an annual basis. In the month of March 2025, the total sales increased by 33.7 per cent to 101,000 vehicles on an annual basis and the 350 cc segment registered a growth of 49 per cent on an annual basis.
The Royal Enfield is a strong position in the segment of the domestic market with a capacity of over 250 cc capacity, which has been helped with continuous new offers, including new models such as Goa Classic 350 and Scramas 440. In addition, it has recently introduced a new electric vehicle brand, flying flee, whose models are scheduled to come in the first quarter of FY 2026.
Analysts of Kotak Institutional Equities are estimated to increase the operational benefit of Eicher Motors by 14 per cent on an annual basis with the help of 24 per cent sales hike in the March quarter. This will affect some extent high marketing and advertising expenses.
The brokerage firm said in a quarterly income forecast, “Royal Enfield sales increased by 24 per cent on an annual basis with strong demand in domestic and export markets in the fourth quarter of FY 2025. Due to this, we are estimated to increase the main revenue on the annual basis in the fourth quarter on an annual basis.
Analysts are expected to increase the main operational profit margin margin to increase to 60 base points on a quarterly basis with the help of a mixture of operating efficiency, export and low offering costs in the fourth quarter. Due to this benefit, high marketing expenses and pressure of inferior mixture in the domestic market can be compensated.
ICICI Securities said in the company update that the long-term landscape for the Royal Enfield franchisee is looking strong for the upcoming new offers as well as the concrete steps being taken in the electric vehicle (EV) region. Recently, keeping in mind the relief from exemption in individual income tax system, analysts have said that they have retained the ‘buy’ rating on this stock and set a price target of Rs 6,000 per share for Eicher Motors.
First Published – April 18, 2025 | 10:58 PM IST
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