Eicher Motors: Motilal Oswal Sees Fair Valuation After Q4; Maintains Neutral Rating — Check Target Price

NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Eicher Motors Ltd. shares are likely to remain in focus after Motilal Oswal Financial Services maintained a ‘Neutral' rating on the stock following the company's Q4 FY26 results, citing sustained margin pressure despite healthy demand momentum across the Royal Enfield business.

The brokerage has assigned a target price of Rs 6,912 on the stock, implying a potential downside of 1%.

The brokerage projects Royal Enfield to record a 13.5% volume CAGR over FY26-28E. However, while it expects the domestic business to deliver a 14% CAGR, exports are likely to post a much slower 9% CAGR, that too largely back-ended.

Given management's focus on volume growth and the recent upsurge in input costs, Motilal Oswal expect margins to remain under pressure.

Overall, the brokerage expect Eicher Motors to post a 14% earnings CAGR. At 31.6x/27.6x FY27E/FY28E, the stock appears fairly valued.

Reiterate Neutral with a target price of Rs 6,912. We value RE at 28x FY28E EPS and VE Commercial Vehice at 12x EV/Ebitda.

Click on the attachment to read the full report: