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Eicher Motors share price jumps 5% on higher 2-wheeler sales, Motilal Oswal sees 53% upside

Motilal Oswal Financial Services has a "buy" recommendation, with a target of Rs 25,350 per share, indicating a rise of 53 percent.

March 03, 2020 / 10:34 AM IST
 
 
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The share price of Eicher Motors jumped almost 5 percent intraday on March 3 after the motorcycle and commercial vehicles manufacturer’s Royal Enfield sales rose 1 percent to 63,536 units in February 2020 against 62,630 units in the same month last year.

However, total two-wheeler exports were down 8 percent to 2,348 units in February 2020 compared with 2,564 units in the year-ago period.

The company on March 1, 2020 reported 28.7 percent decline in VE Commercial Vehicles (VECV) sales to 4,586 units in February 2020 from 6,428 units in February 2019.

Domestic sales tumbled 27.4 percent to 3,875 units, while exports tanked 39.4 percent to 564 units during the period.

The coronavirus outbreak had minimal impact on the production of motorcycles. Some of the company’s supply partners depend on manufacturers in China for certain components. The company is making efforts to keep the supplies coming in.

The company has already moved a large part of its product portfolio to BS-VI and is seeing a good response to motorcycles, the company said in a filing.

The company’s board of directors will meet on March 11, 2020 to consider and approve proposal for payment of interim dividend on the equity shares for the financial year 2019-20.

Brokerage firm Motilal Oswal Financial Services has a buy recommendation on Eicher Motors, with a target of Rs 25,350 per share, indicating a rise of 53 percent.

The stock was quoting at Rs 17,764.35, up Rs 758.20, or 4.46 percent. It has touched an intraday high of Rs 17,835.20 and an intraday low of Rs 17,460.35.

Disclaimer: The views and investment tips expressed by 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.

Moneycontrol News
first published: Mar 3, 2020 10:34 am

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