Eicher Motors stock jumps 7% to record high, crosses ₹4,000 mark for first time; here's why | Mint
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Business News/ Markets / Stock Markets/  Eicher Motors stock jumps 7% to record high, crosses 4,000 mark for first time; here's why
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Eicher Motors stock jumps 7% to record high, crosses ₹4,000 mark for first time; here's why

In November, the shares jumped 18.25%, registering the largest monthly gain in 3 years. The premium bike market is largely dominated by Eicher Motors' Royal Enfield, the oldest motorcycle brand.

Brokerage firm Geojit Financial Services holds its 'buy' rating on the stock with a revised target price of ₹4,333 apiece following the company's Q2FY24 performance. (REUTERS)Premium
Brokerage firm Geojit Financial Services holds its 'buy' rating on the stock with a revised target price of 4,333 apiece following the company's Q2FY24 performance. (REUTERS)

In a significant milestone, the shares of Eicher Motors, part of the Nifty 50 index, crossed the 4,000 apiece mark for the first time in today's session, recording a new all-time high of 4,164.90 apiece, up by 7%. 

The company's shares have been trading on an ex-split basis with a 1:10 ratio since August 25, 2020.

In November, the shares jumped 18.25%, registering the largest monthly gain in 3 years. However, in a year-to-date comparison with the Nifty Auto index, the stock has shown relative underperformance. While the Nifty Auto index surged by 39.50% this year, Eicher Motors' shares gained 26.23%.

Also Read: Hero MotoCorp, BPCL, Coal India, Bajaj Auto and Eicher are top 5 Nifty 50 gainers that helped Nifty scale new high

On Friday, the company released its sales numbers for November, posting a 13% growth in sales at 74,275 units for models with engine capacities up to 350cc, while sales of engine capacities exceeding 350cc reached 5,976 units, up from 4,810 units, reflecting a 24% increase.

The total sales of motorcycles with engine capacities up to 350cc and those exceeding 350cc, reached 80,251 units in November 2023, compared to 70,766 units in November 2022, reflecting 13% growth. The sales from the international segment reached 5,114 units in November from 5,006 in November 2022, which is a marginal rise of 2%.

Also Read: Jefferies says these three automakers are its top stock picks among 8 Indian companies; See full list

The sales of trucks and buses in the domestic market jumped to 4,686 units in November 2023, compared to 4,483 units in the corresponding period last year. The overall sales of Volvo buses and trucks also demonstrated a positive trend, totaling 205 units, marking a 12% improvement from the 183 units sold in November 2022.

In terms of total sales volume of VECV (both domestic sales and exports), the company sold 5,194 units in November. This represents a 5.9% year-on-year improvement.

Also Read: Auto demand stays steady in November

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.

On November 24, Royal Enfield unveiled the Shotgun 650, a custom-inspired neo-retro motorcycle limited to 25 units. Priced at 4,25,000 (ex-showroom), the Shotgun 650 Motoverse Edition, built on the 650-Twin platform, pays homage to custom culture and signifies Royal Enfield motorcycles as a canvas for creative customisation, as per the company's exchange filing. 

Furthermore, on November 07, Royal Enfield unveiled the all-new Himalayan at the EICMA Motor Show 2023 in Milan, Italy, for global audiences. The company plans to launch the Himalayan soon in India, followed by Europe, the Asia-Pacific region, and the Americas.

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: Can Himalayan accelerate Royal Enfield’s market share?

In addition, the company in September 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.

Meanwhile, brokerage firm Geojit Financial Services holds its 'buy' rating on the stock with a revised target price of 4,333 apiece following the company's Q2FY24 performance.

At 2:15 PM, the stock was trading with a gain of 6.85% at 4,157.70 apiece. 

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Published: 04 Dec 2023, 02:37 PM IST
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