Eicher Motors share price fell nearly 3 percent in the early trade on August 13, a day after the company reported a consolidated profit after tax of Rs 237 crore for the quarter ended June, riding on improved sales.
The company reported a loss of Rs 55 crore in the April-June period of 2020-21. Its revenue from operations rose to Rs 1,974 crore from Rs 818 crore in the corresponding quarter of FY 2020-21.
Royal Enfield, a part of Eicher Motors, reported sales of 1,22,170 motorcycles in the first quarter, more than a two-fold increase from 58,383 units sold in the first quarter of last fiscal.
Royal Enfield CEO Vinod Dasari is stepping down with effect from August 13 and the company has appointed B Govindarajan as executive director to head the Royal Enfield business.
Here is what brokerages have to say about the stock and the company after the June quarter earnings:
Bernstein | Rating: Market-perform | Target: Rs 2,970
The broking firm kept market-perform rating on the stock with the target at Rs 2,970 a share.
The CEO's resignation may disappoint investors who were hoping for a faster scaling up of the business.
Morgan Stanley | Rating: Overweight | Target: Rs 3,145
Morgan Stanley has maintained an "overweight" call on the stock as core thesis on exports rising and new models supporting demand remains intact.
The company’s gross profit/unit rose 9 percent QoQ, the highest among OEMs, reflecting better pricing power. The CEO's departure and limited visibility on near-term production will be an overhang.
Catch all the market action on our live blog
Kotak Institutional Equities | Rating: Sell | Target: Rs 2,340
Kotak Institutional Equities kept a sell rating on the stock as the valuation remains expensive at the current market price.
The company’s standalone EBITDA was 14% above estimates due to higher ASPs and expect a swift recovery in volume from H2FY22.
Motilal Oswal | Rating: Buy| Target: Rs 3,250
Near-term uncertainties due to supply-chain issues notwithstanding, the recently launched Meteor and upcoming products would help expand the addressable markets and drive the next phase of growth for RE.
Eicher Motors was quoting at Rs 2,556.10, down Rs 59.35, or 2.27 percent on the BSE.
The share touched a 52-week high of Rs 3,035.50 and a 52-week low of Rs 2,007.10 on January 22, 2021 and August 14, 2020, respectively. It is trading 15.79 percent below its 52-week high and 27.35 percent above its 52-week low.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
