Eicher hits record high

Eicher Motors rose 1.16% to Rs 33,167.05 at 11:57 IST on BSE, extending Thursday's gains on buzz the company is preparing an offer to acquire superbike major Ducati for $1.8 to 2 billion.

Meanwhile, the S&P BSE Sensex was up 42.57 points or 0.13% at 31,705.31.

On the BSE, 3,236 shares were traded on the counter so far as against the average daily volumes of 8,437 shares in the past one quarter. The stock had hit a high of Rs 33,483.95 so far during the day, which is a record high. The stock hit a low of Rs 33,071.20 so far during the day. The stock had hit a 52-week low of Rs 19,570.90 on 15 November 2016.

The stock had outperformed the market over the past one month till 7 September 2017, advancing 2.43% compared with the Sensex's 1.89% fall. The stock had also outperformed the market over the past one quarter, gaining 10.69% as against the Sensex's 1.25% rise. The scrip had also outperformed the market over the past one year, advancing 42.71% as against the Sensex's 9.46% rise.

The large-cap company has equity capital of Rs 27.22 crore. Face value per share is Rs 10.

Shares of Eicher Motors have risen 3.51% in two trading sessions to its ruling market price, from its close of Rs 32,040.90 on 6 September 2017, on reports the company is preparing an offer to acquire superbike major Ducati for $1.8 to 2 billion. The stock had risen 2.33% to settle at Rs 32,786.40 yesterday, 7 September 2017.

Reports suggested that Eicher is close to making a binding offer to acquire Italian superbikes Ducati for around $1.8 to 2 billion. The deal is being valued at 14-15 times Ducati's earnings before interest, taxes, depreciation and amortisation (EBITDA) of about 100 million euro, reports added.

On a consolidated basis, net profit of Eicher Motors rose 22.1% to Rs 459.62 crore on 28.5% rise in net sales to Rs 1991.78 crore in Q1 June 2017 over Q1 June 2016.

Eicher Motors is a leading player in the Indian automotive space. Eicher Motors owns the iconic Royal Enfield motorcycle business, which leads the premium motorcycle segment in India. The company's joint venture with the Volvo group, VE Commercial Vehicles, designs, manufactures and markets trucks and buses. The company's joint venture with US-based Polaris Industries Inc launched the Multix, a new 3-in-1 vehicle purpose built for the independent businessman in June 2015.

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