Eicher Motors shares fall after in-line Q2 earnings: What analysts say

Eicher Motors reported its September quarter number last week. Both the topline and bottomline are in line with the estimates. Eicher Motors shares have been one of the best-performing stocks in 2022. The stock has given nearly 30% returns in 2022. Let us look at its recent quarter number and share target price.

Check Eicher Motors stock price

The chart below shows a yearly comparison on important figures. 

Profit increase: The company reported a net profit of Rs 657 crore in Q2FY23, a jump of 76% YoY. The profit is in line with estimates of Rs 659 crore.

Revenue: The company reported a revenue of Rs 3519 crore, its highest-ever revenue. In the year-ago period, the company reported revenue of Rs 2250 crore, and the revenue increased by 56%. 

EBITDA: Eicher's earnings before interest, taxes, depreciation, and amortization (EBITDA) were up 75% to Rs 822 crore against Rs 470 crore in FY22.

On Electric Vehicle: The company said that it believes EV is the future and in its understanding, it is a few years away. The first product may come three years down the road. 

Management commentary: “We have seen the highest ever revenue from operations and profit after tax. We started the quarter with the launch of Hunter 350. The festival season brought in strong sales for Eicher Motors,” said B. Govindarajan, chief executive officer- Royal Enfield and Wholetime Director, EML. 

Eicher Motors share target price

Morgan Stanley: The firm has given an EQUALWEIGHT call with a target price of Rs 4065 per share. They are bullish giving a thumbs-up to the company’s strategy to focus on growth instead of margins. Eicher is doing the right thing as per the firm by focusing on growth over margin.

CLSA: Eicher's results were in line with its estimates. The brokerage company maintains a BUY on Eicher Motors stock with a higher price target of Rs 4511.  

Motial Oswal: The firm noted that lower exports hurt operating performance in the quarter. It expects the benefits of easing commodity costs to start reflecting from the third quarter. Easing supply chain pressures, continued product expansion and ramp-up in exports to aid recovery going forward. Motilal Oswal reiterated ‘buy’ rating with a target price of Rs 4,150,