Eicher Motors Q3 Results Review: Motilal Oswal Reiterates 'Sell' On The Stock — Here's Why

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Motilal Oswal Report

Eicher Motors Ltd.’s Q3 FY25 operating performance missed estimates, with a 190bp YoY margin contraction to 24.2%, as management is now focused on driving growth.

Management has indicated that it would continue to invest in demand-generation activities, including brand building, to help drive growth going forward. While exports improved in Q3 FY25, sentiments are likely to remain weak and management maintains a cautiously optimistic outlook.

We expect RE to deliver a 12% earnings CAGR over FY24-27E. Given the expected slower earnings growth, we see no reason for the stock to trade at premium valuations.

Reiterate Sell with a target price of Rs 4,305 (premised on Dec’26E SOTP.

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