Eicher Motors share price jumps over 8% after Q2 results. Should you buy?

Eicher Motors shares surged over 8% in early trading after brokerages shared their views about the company’s Q2 earnings. At 10:57 am, shares of the company were up 8.02% to 4,957.25 on the Bombay Stock Exchange (BSE).
The parent company of Royal Enfield posted a year-on-year net profit increase of 8% to Rs 1,100 crore, up from Rs 1,016 crore a year earlier. Despite this, the results fell slightly short of market estimates, including EBITDA performance, which was flat at Rs 1,087 crore.
The company’s revenue also showed moderate growth, rising by 3.6% to Rs 4,263 crore.
However, Royal Enfield’s Q2 motorcycle sales declined slightly, with 2.25 lakh units sold compared to 2.29 lakh in the same period last year. Eicher’s EBITDA margin also contracted, landing at 25.5% from 26.4% a year ago, which came in under expectations of 29%.
Brokerages reacted with mixed recommendations, but a majority of them have a ‘BUY’ rating on the stock.
Nuvama upgraded Eicher to a “Buy” with a revised target price of Rs 5,500, citing an expected boost from Royal Enfield’s strong festive demand, new product focus on models like the Classic and Bullet, and increased marketing efforts.
The brokerage projects a compound annual growth rate (CAGR) of 9% in revenue and 11% in earnings through FY24–27, supported by recent strategic shifts.
Jefferies echoed the optimism, also setting a target price of Rs 5,500, as it anticipates benefits from the rising trend of premium two-wheeler purchases.
Emkay Global, raising its target price to Rs 5,300, pointed to Eicher’s focus on driving volumes with launches like the Bullet Battalion Black and robust festive sales.
Meanwhile, Citi noted that the company’s pivot to prioritise volume growth, even at the cost of margin expansion, is a strategic response to market competition.
On the other hand, Morgan Stanley maintained an ‘Underweight’ rating with a target of Rs 3,655, citing missed earnings expectations and ongoing competitive pressures.
Similarly, Nomura upgraded Eicher to “Neutral” with a target of Rs 4,391, highlighting the company’s volume-led strategy to mitigate market share risks but also acknowledging margin pressures.
With 50% of 40 analysts rating Eicher Motors as a “Buy,” the stock seems like an attractive choice for investors anticipating long-term growth potential despite short-term margin constraints.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)