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Eicher Motors rises 4% on above-estimate Q2 net profit, revenue; should you buy the stock?

With a record revenue of Rs 4,115 crore, up 17 percent on-year, and EBITDA of Rs 1,087 crore, up 32 percent YoY, the company reported highest ever net profit of Rs 1,016 crore, a robust growth of 55 percent on-year.

November 13, 2023 / 10:21 IST
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Morgan Stanley has an 'equal-weight' call on Eicher Motors stock with a target price of Rs 3,552 per share

Shares of Eicher Motors rose more than 4 percent on November 13, after the auto major reported better-than-expected earnings for the fiscal second quarter. With a record revenue of Rs 4,115 crore, up 17 percent on-year, and EBITDA of Rs 1,087 crore, up 32 percent YoY, the company reported highest ever net profit of Rs 1,016 crore, a robust growth of 55 percent on-year.

At 10:07 am, Eicher Motors shares were trading 4 percent higher at Rs 3,657.00 on the National Stock Exchange. In the last one year, the stock has risen around 4 percent, underperforming benchmark Nifty 50.

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The tractor maker's consolidated EBITDA margin came in at 26.4 percent despite a weaker mix, offset by the full benefit of Q1 price hikes and raw material (RM) cost savings. With the launch of the Himalayan 452cc on a new platform, Royal Enfield has further intensified competition in the premium segment of bikes.

Recent launches such as Super Meteor 650cc and Himalayan 450cc along with the upcoming line-up have the potential to rev up growth in the face of higher competitive intensity, said analysts.