Eicher Motors shares jump 5% on posting 20% YoY rise in Q1 PAT. Should you invest?
Eicher Motors jumped 5% in Friday's early trading session to its day’s high of Rs 4,820 after the company on Thursday reported a 20% year-on-year (YoY) rise in consolidated net profit at Rs 1,101.46 crore for the quarter ended June 2024.
The two-wheeler manufacturer's total revenue from operations stood at Rs 4,393 crore for the reported quarter, higher by 10% versus Rs 3,986.37 crore posted in the corresponding quarter of the previous financial year. The revenue figures were also above Street estimates of Rs 4,268 crore.
The Royal Enfield maker reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of Rs 1,165 crore for the April-June quarter, up 14.1% as compared to Rs 1,021 crore in the same quarter of the previous financial year.
During the quarter, Royal Enfield recorded sales of 2,27,736 motorcycles as compared to 2,25,368 motorcycles sold during the same period in FY 2023-24.
Here is how brokerages view the results:
Goldman Sachs: Buy| Target price: Rs 5,600
Goldman Sachs has maintained a buy view on Eicher while hiking the target price to Rs 5600 from Rs 5400.
Guerrilla launch and the upcoming new Classic represent upside optionality. Higher export volumes are expected to benefit from the Guerrilla launch. VECV is also entering a period of lower taxes which adds 2% to earnings power.
UBS: Buy| Target price: Rs 5,820
UBS maintained a buy rating on Eicher Motors with a target price of Rs 5820.
The company showed strong Q1 performance and a good operational performance for
