Eicher Motors skids 3%, snaps gaining streak in rush to book profits

In the last four days, the stock had surged nearly 9 percent, and over 15 percent in the last 3 months.

Automobile major Eicher Motors fell 3 percent to Rs 3,815 in morning trade on February 2, snapping its four-day gaining streak on the bourses, after investors rushed to book profits on the counter.

At 9:57am, the stock was trading at Rs 3,855, down 2 percent from the previous close on the NSE. In the last four days, the stock had surged nearly 9 percent, and over 15 percent in the last three months.

Follow our market blog for all the live action

In January 2024, Eicher Motors reported a 2 percent on-year growth in total vehicle sales, reaching 76,187 units. This compares to the 74,746 motorcycles sold a year back. Models with engine capacity up to 350cc declined a marginal 1 percent to 67,620 units from 68,183 in January 2023.

Models with the engine capacity exceeding 350cc segment saw a 31 percent increase 31 percent to 8,657 units from 6,563 sold during the same month last year.

On January 17, CLSA downgraded the stock to 'sell' from an 'underperform' rating amid valuation concerns. Analysts said the stock is overvalued after the recent rally, as valuations are pricing in double-digit volume growth over the next few years, which seems unlikely.

It was the second brokerage to downgrade Eicher in two days. On January 16, Morgan Stanley downgraded the stock to 'underweight' from 'equal-weight' and cut the target price.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.