Shares of Eicher Motors surged 3.8% on Wednesday, February 15, after the company reported a 62.42% rise in the consolidated profit after tax (PAT) at ₹740.84 crores for the third quarter that ended December 31, 2022, meeting industry estimates.
On a sequential basis, the profit jumped 13% from ₹657 crore clocked in the September quarter. The company's revenues rose 6% quarter-on-quarter (QoQ) from ₹3,519 crore in the preceding quarter.
During Wednesday’s trade, the stock opened at a price of Rs. 3,203 per share, closely against the previous close of Rs. 3,175.70 per share and grew further during the early trading session to touch an intraday high of Rs. 3,297.90.
It was trading at ₹3,261.90 apiece, up by 2.71%, at 10:40 a.m. on the NSE.
The stock touched a 52-week high of Rs. 3,889.65 on November 01, 2022, and a 52-week low of Rs. 2,159.55 on March 08, 2022, indicating that at the current level, the stock is trading 51% above its 52-week low and 15% below its 52-week high.
The stock has grown nearly 4% in the last one month. However, in the past six months, it has declined by a marginal 2%. Furthermore, the stock has yielded a return of almost 20% in the last one year.
On Tuesday, the company informed that its total sales grew 48% to 6.16 lakh units in the nine months that ended December as against 4.16 lakh units in the same period the previous year.
The sales of models with engine capacities up to 350cc have seen a robust growth in the April-December period. According to data, about 5.40 lakh units were sold during this period, a 54% increase compared to the same period last year.
Similarly, models exceeding 350cc also saw healthy growth with sales rising 16% to 75,781 units.
Consolidated total income during the quarter under review stood at ₹3,913.32 crore as compared to ₹2,972.79 crore in the year-ago period, it added. Total expenses were higher at ₹3,006.19 crore, up from ₹2,415.79 crore in the same period last fiscal.
“With these motorcycles, and with upcoming launches at Royal Enfield, we intend to bring a strong and compelling portfolio in the middleweight segment which has immense growth potential in markets around the world," stated Siddhartha Lal, MD of the company.
"We continue to remain focused on expanding our distribution and service network and delivering consistent uptime to our customers," he added.
Global brokerage firm Jefferies has retained a ‘Buy’ rating on Eicher Motors shares with a target price of ₹4,250 apiece, on good Q3, and believes it is on track for its best year amid an industry downturn, reported Mint.
Eicher Motors is engaged in the manufacturing and selling of motorcycles, spare parts and related services.
According to a MintGenie poll, 38 analysts on an average have a ‘BUY’ call on the stock.
