Eicher Motors Q3 Review: The Ride Ahead Is Bumpier For Royal Enfield

Eicher Motors Ltd. clocked its highest ever quarterly revenue in the fiscal third quarter even as volumes at its motorcycling unit remained largely muted, indicating that competition is finally catching up.

Citi

• Retains 'buy' rating. Target price revised lower to Rs 4,700 apiece

• Response to two new 350 cc+ models seeing traction

• Preowned and buyback business aimed at brand value

• Estimates trimmed to account for modest volume growth

Emkay

• Downgrades to ‘sell’. Target price revised lower to Rs 3,250 apiece

• While earnings were largely in-line, margins dipped 33 bps QoQ

• Competition, lacklustre new launches impacting market share

• FY25/26E volumes cut by 5.6%/10.6% on muted volumes outlook

• EPS downgrade softer due to higher other income

Nuvama

• Retains ‘buy’ rating. Target price cut to Rs 4,400 apiece

• Competition, exports has affected recent performance

• FY25E/FY26E EPS cut by 4%/5% on likely low volumes

• Expect CAGR of 9% over FY23-26E due to replacement

• 450 cc, 650 cc range can potentially support growth

Nomura

• Retains ’neutral’ rating, target price raised to Rs 3,760 apiece

• Competition is set to intensify in FY25, hurting volumes

• Success of new models can drive up average selling price

• Overall retail sales were good at 70,000 units

• Marketing spends were higher by Rs 2,000 crore