Eicher Motors Has Goldman Sachs Bullish As Product Launch Momentum Accelerates
Eicher is also poised for an export boost, with margins and average selling prices in international markets outperforming domestic levels, Goldman Sachs said.
Goldman Sachs has raised its target price on Eicher Motors Ltd. following a surge in new product launches and stronger-than-expected October sales volumes for its Royal Enfield motorcycles. The brokerage has upgraded its 12-month target price for the stock to Rs 5,900 per share, implying a potential upside of 18.8%.
Eicher's momentum is powered by an aggressive product pipeline, which includes refreshed models like the Bullet 350, and new launches such as the Guerrilla 450, Classic 650, and the electric Flying Flea, said the note. The company plans more launches across 350cc to 650cc categories over the next year.
Eicher is also poised for an export boost, with margins and average selling prices in international markets outperforming domestic levels, Goldman Sachs said.
Goldman Sachs has also revised up its financial estimates for the next two fiscals. Revenue is expected to grow to Rs 18,575 crore in the current fiscal, scaling further to Rs 24,595 crore by fiscal 2027. Ebitda projections now stand at Rs 5,084 crore for this fiscal, reflecting a 6.3% increase over prior estimates, and earnings per share has been revised to Rs 177.59 for financial year 2025, rising to Rs 248.57 in the next two years. These revisions indicate volume growth and margin expansion.
The brokerage cites improved channel inventory, stellar October volumes, and a strong market response to Royal Enfield's portfolio refresh as primary reasons for the upbeat view. These developments align with Eicher's goal of sustaining double-digit growth across key financial metrics.
Eicher Motors Share Price Today
Shares of Eicher Motors fell as much as 1.51% to Rs 4,890.30 apiece. They pared loss to trade 0.83% lower at Rs 4,924 apiece, as of 09:39 a.m., compared to a 0.84% decline in the NSE Nifty 50.
The stock has risen 26.47% on a year-to-date basis. The relative strength index was at 54.86.
Out of 39 analysts tracking the company, 21 maintain a 'buy' rating, 12 recommend a 'hold', and nine suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 0.2%.
