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Business News/ Markets / Stock Markets/  Eicher Motors shares hit fresh 52-week high, up 17% in November so far; here's why
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Eicher Motors shares hit fresh 52-week high, up 17% in November so far; here's why

Eicher Motors' stock has closed in the green for 8 out of the 10 sessions in November, with today's session standing out with a 6% rally. The stock has gained nearly 17% for the month.

The company reported its highest-ever quarterly revenue of ₹4,115 crore in Q2FY24, marking a 17% YoY increase from ₹3,519 crore in the corresponding quarter of the previous year. (REUTERS)Premium
The company reported its highest-ever quarterly revenue of 4,115 crore in Q2FY24, marking a 17% YoY increase from 3,519 crore in the corresponding quarter of the previous year. (REUTERS)

Shares of Eicher Motors hit a new 52-week high of 3,860 apiece in today's trade, gaining 5.9%. The stock's bullish momentum began on the back of the release of the company's October business update on November 01.

In the current month, the stock has closed in the green for 8 out of the 10 sessions, with today's session standing out with a 5.57% rally. This robust performance has propelled the stock to a gain of nearly 17% for the month, with 10 more trading sessions remaining. At current levels, the stock is just 1% away from reaching its all-time high of 3,889.

Also Read: Auto Sales: 26.21 lakh vehicles sold in October 2023, highest ever sales in the month for PVs, says SIAM

The company reported a 2% growth in sales at 76,075 units for models with engine capacities up to 350cc in October, while sales of engine capacities exceeding 350cc reached 8,360 units, up from 7,407 units, reflecting a 13% increase.

The total sales of motorcycles with engine capacities up to 350cc and those exceeding 350cc, reached 84,435 units in October 2023, compared to 82,235 units in October 2022, reflecting 3% growth. However, sales from the international segment dropped to 3,477 units in October from 5,707 in October 2022, which is a fall of 39%.

Also Read: Maruti Suzuki vs M&M: Which auto stock should you buy for long term?

Currently, the premium bike market is largely dominated by Eicher Motors' Royal Enfield, the oldest motorcycle brand in continuous production that holds more than 90% of the market share in motorcycles with engine capacities greater than 250cc.

In September, the company launched the Royal Enfield Bullet 350 in a new avatar, powered by the modern, globally acclaimed 349cc air-oil-cooled single-cylinder engine that also powers the Meteor, Classic, and Hunter.

Royal Enfield unveiled the all-new Himalayan at EICMA 2023 for global audiences. Based on Royal Enfield’s latest, lightest, and most technologically advanced vehicle integrated powertrain, the new Himalayan will be powered by the new Sherpa 450 liquid-cooled engine (the segment’s first) and will have a host of new integrated tech features that enhance and improve the adventure touring experience on the new motorcycle.

Also Read: Royal Enfield's 2023 Himalayan to unveil on Nov 24; pre-bookings commences in India

Meanwhile, in Q2 FY24, the company launched Royal Enfield Rentals, a unique initiative that provides riders with the opportunity to rent a Royal Enfield motorcycle anywhere in India, according to the company's Q2 earnings report. 

In terms of financial performance, the company reported its highest-ever quarterly revenue of 4,115 crore in Q2FY24, marking a 17% YoY increase from 3,519 crore in the corresponding quarter of the previous year.

Also Read: Diwali 2023: Will the upcoming festive season be a game changer for auto space?

Additionally, the company reported its highest-ever quarterly EBITDA of 1,087 crore, reflecting 32% YoY growth. The net profit also reached a record high of 1,016 crore, showcasing a significant 54% improvement over Q2 FY23's net profit of 657 crore.

During the quarter, the company sold a record 229,496 Royal Enfield Motorcycles, representing a 13% increase from the 203,451 motorcycles sold in the same period of FY 2022–23.

Going forward, the expansion of the middle-class and high-income segments will have a transformative effect on future consumption patterns, leading to an incremental consumption of $4 trillion by 2030, according to analysts. This projection signifies a significant opportunity for the premium bike market to thrive and grow.

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.

 

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Published: 15 Nov 2023, 04:40 PM IST
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