Eicher Motors shares rise 3% after Q1 profit zooms 50% YoY. Should you buy, sell or hold?

economictimes.indiatimes.com:

Eicher Motors shares rose nearly 3% to Rs 3,478 in early trade on Friday after the firm reported a 50.38% year-on-year (YoY) rise in its June quarter profit at Rs 918 crore to beat Street estimates. However, later in the day, the stock was trading flat at Rs 3,378.

The company's revenue rose 17.33% YoY to Rs 3,986.37 crore during the quarter. On a sequential basis, Eicher's PAT improved by 1.4% and revenue by 4.78%.

The automaker's consolidated margin came in at 25.6% and was higher than the estimate of 24.5%.Eicher said this is the best-ever Q1 performance for the company, and also the fourth consecutive quarter of highest-ever revenue from operations and PAT. During the quarter, Royal Enfield sold 225,368 units, an increase of 21.1% from 186,032 motorcycles sold over the same period in FY 2022-23.Should you buy, sell or hold Eicher Motors' stock? Here's what analysts say:HDFC Securities HDFC Securities reiterated its 'Reduce' rating on Eicher Motors with a revised target price of Rs 3,207 (Earlier: Rs 3,086) «Eicher’s Q1 PAT was ahead of estimates due to higher-than-expected other income at RE and strong performance at VECV even as standalone EBITDA was in line with estimates.

Given the competitive aggression, we believe that RE would be forced to reconsider its pricing/brand strategy very quickly, which will in turn drive margin pressure. Even exports momentum is now derailed given the geopolitical challenges at least in the near term,» it said.Emkay Brokerage firm Emkay retained its 'Buy' rating on Eicher Motors with a target price of Rs 4,000.