Why experts are bullish on Eicher Motors shares — explained
Eicher share price has given breakout at ₹2950 last week and it may go on to breach its 52-week high in immediate short-term, say experts
Eicher Motors share price: After trading sideways for around 3 months, Eicher share price has given upside movement as the auto stock has risen around 14 per cent in September 2021. The Royal Enfield manufacturer's stock has given breakout at ₹2950 last week and it may go on to breach its 52-week high in immediate short-term, as per stock market experts.
Experts have advised investors to buy this auto stock above ₹2900 levels as the stock is looking highly bullish after Scrappage Policy announcement.
Expecting sharp upside in Eicher shares; Sumeet Bagadia, Executive Director at Choice Broking said, "The stock has given breakout at 2950 last week and it may soon go up to ₹3050 breaching its 52-week high of 3037 apiece. One can buy Eicher Motors shares in between ₹2900 to ₹2950 levels maintaining stop loss at ₹2875 per stock levels."
Speaking on the fundamentals supporting rally in Eicher Motors share price, Sanjay Chawla, Head of Research and Strategist at Emkay Global Securities said that strong demand revival is expected even as the sector is buffeted by near-term headwinds (chip shortage, commodity inflation, fuel prices). “The preference order is commercial vehicles, 2-wheeler, private vehicles and tractors."
Expecting normal monsoon to aid tractor sales of Eicher Motors; Avinash Gorakshkar, Head of Research at Profitmart securities said, "The auto company manufactures commercial vehicle and motorcycles. Since, commercial vehicles are expected to get a boost after the Scrappage Policy announcement, this auto company can be one of the major beneficiaries of this central government's move in long-term. Apart from this, unlock activities are fast gaining momentum. In this unlock theme, 2-wheeler market in auto sector is expected to get benefit of unlock theme. So, one can buy Eicher Motors shares for both medium to long-term time horizon.""
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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