Eicher Motors stock enters top 50 most-valuable club; up 18% in 5 weeks

Royal Enfield maker posts record August sales of 114,002 units, up 55% Y-o-Y

Shares of Eicher Motors hit a record high of ₹6,389.01, rising nearly 2 per cent on the BSE in Tuesday’s intraday trade. Over the past two sessions, the stock of Royal Enfield’s parent — a global manufacturer of middleweight motorcycles — has rallied 5 per cent after reporting strong August 2025 sales.

 

In the past five weeks, the stock has jumped 17 per cent. So far in 2025, Eicher Motors has surged 30 per cent, far outpacing the BSE Sensex (up 2 per cent) and the BSE Auto Index (up 10 per cent).

 

On Tuesday, Eicher Motors closed 1 per cent higher at ₹6,347.05, against a 0.2 per cent decline in both the Sensex and Auto index.

 

Eicher has now entered the BSE’s top 50 most valuable listed firms. With a market capitalisation (mcap) of ₹1.74 trillion, it ranked 49th in overall mcap, BSE data shows.

 

Among two-wheeler (2W) companies, Bajaj Auto leads with an mcap of ₹2.52 trillion. TVS Motor Company (₹1.6 trillion) and Hero MotoCorp (₹1.06 trillion) also hold valuations above ₹1 trillion. 

 

In August 2025, Eicher Motors (Royal Enfield) outpaced its peers, posting 55 per cent year-on-year growth at 114,002 units — its highest monthly sales ever. Royal Enfield likely pushed inventory ahead of the festival season, boosting wholesale volumes.

 

Meanwhile, with export recovery underway, the 2W industry is set for high single-digit volume growth in 2025-26 (FY26), outpacing other vehicle categories. It is also expected to benefit from personal income-tax rationalisation and GST (goods and services tax) 2.0 reforms, with industry players projecting 6–8 per cent volume growth in FY26, according to ICICI Securities.

 

Analysts at InCred Equities noted that given fiscal constraints, GST cuts may be selective, targeting high-demand-elasticity segments. They estimate a 70–85 per cent probability of a GST rate cut for 2Ws and compact cars, favouring their ‘overweight’ stance on the 2W segment.

 

Looking ahead, GST rationalisation and the festival season are expected to boost recovery in domestic passenger vehicles while sustaining momentum in the 2W segment, JM Financial Institutional Equities said.

 

With zero net debt, strong cash flows, and a well-capitalised balance sheet, Eicher Motors continues to operate from a position of financial strength, management said.

 

The company is well placed to capitalise on premiumisation trends and steady rural demand. Its strategy to broaden its customer base, particularly by targeting a younger demographic, is gaining traction. Continued export momentum, supported by robust demand and expansion initiatives, also bodes well for growth, Geojit Investments noted in its first-quarter FY26 update.

 

Analysts at Emkay Global Financial Services remain positive on 2Ws, citing improved replacement demand, potential rural recovery after prolonged weakness, and sustained export growth. However, they flagged muted original equipment manufacturer commentary, with the festival season and a possible GST cut seen as key catalysts, alongside tax benefits and interest rate reductions.