Shares of Eicher Motors climbed over 5% to Rs 3,340 in Wednesday’s intraday trade on BSE after the company posted 62% growth in consolidated net profit at Rs 741 crore for the quarter ended December 2022. The same was Rs 456 crore in the year-ago period.
The company’s revenue from operations surged 29% to Rs 3,721 crore for the quarter under review against Rs 2,880 crore in the corresponding quarter of last year. Meanwhile, margins improved to 23% in the third quarter as compared to 20% in the same quarter of last year.
On a sequential basis, the profit jumped 13% from Rs 657 crore clocked in the September quarter. The company’s revenues rose 6% quarter-on-quarter (QoQ) from Rs 3,519 crore in the preceding quarter.
The company has sold about 5.40 lakh units of models with engine capacities up to 350cc in the April-December period, up 54% compared with the same period last year. Total sales during the same period jumped 48% to 6.16 lakh units against 4.16 lakh units a year ago.
At 12.50 pm, the stock was trading 4.4% higher at Rs 3,315.6 on BSE. Also, the stock has risen 22% in the last 12 months.
Should you buy, sell or hold Eicher Motors’ stock? Here’s what analysts say:
HDFC Securities
HDFC Securities reiterated its Add rating on Eicher Motors with a target price of Rs 3,351 (Earlier: Rs 3,859).
“Given the better-than-expected volume pick-up in Q3, we have raised our forecast for FY23 by 5.5%. However, we pare down our estimates by 1/6% over FY24-25E as we realign our margin estimates to its revised strategy,” it said.
JM Financial
JM Financial maintained its Buy rating on Eicher Motors with a target price of Rs 4,100.
“With the improvement in underlying demand sentiment and product interventions, we believe the company is back on the growth trajectory (FY22-25E volume CAGR: 20%). Cost control initiatives and positive operating leverage is expected to support margin performance,” JM Financial said.
Motilal Oswal
Motilal Oswal maintained its Buy rating on Eicher Motors with a target price of Rs 3,625.
“Improving supply, new product launches and the ramp-up in exports will drive the next phase of growth for RE. This, coupled with stable commodity prices, will support margins and drive earnings growth,” it said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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