Eicher Motors stock up 7% in 1 week; brokerages remain bullish

Eicher Motors stands well-positioned to sustain its growth momentum, backed by a strong brand, disciplined cost control, and prudent capital allocation.

Eicher Motors share price today

 

Shares of Eicher Motors hit a new high of ₹7,165, gaining 1 per cent on the BSE in Friday’s intra-day trade.

 

In the past one week, the stock price of the parent company of Royal Enfield (RE), a global manufacturer of middleweight motorcycles, has outperformed the market by surging 7 per cent. In comparison, the BSE Sensex and the BSE Auto index were up 1.6 per cent and 0.8 per cent, respectively.

 

Thus far in the calendar year 2025, the market price of Eicher Motors has appreciated by 47 per cent, as against a 9 per cent rally in the benchmark index and 17 per cent surge in the auto index.

 

What's driving Eicher Motors stock price?

 

Eicher Motors continued the growth momentum forward in the second quarter with a solid performance. The festive season has been particularly very encouraging for the company, driven by robust demand, record bookings and the sustained consumer confidence and a clear reflection of brand strength.

 

The GST reforms by the Government of India have made motorcycles under 350cc more accessible and the customer's response is a clear testament to this during this window. The festive season was truly an outstanding one for Royal Enfield.

 

India's economy has remained resilient, supported by strong fundamentals and policy support, capex in roads and infrastructure and Make in India incentives supported manufacturing and demand for freight movement with inflation contained at 4 per cent and financing conditions stable, and of course, the GST rates rationalization, EV demand held firm through the extended monsoon period and is poised to improve further in H2 as projected executions pick up, Eicher Motors said in the Q2 earnings conference call.

 

Should you buy or hold Eicher Motors?

 

Eicher Motors is entering a multi-year upcycle driven by a refreshed and expanding portfolio which include recent updates to the Meteor, Classic and Hunter lines, new colourways, and the steady ramp-up of premium platforms such as the Himalayan and Shotgun all of which have materially lifted inquiry-to-booking conversions and supported record quarterly volumes.

 

Additionally, RE’s EV platform “Flying Flea” has seen strong global interest following showcases of models. With upcoming new launches in the pipeline coupled with tangible steps being taken in the EV space, there exists healthy growth longevity for Royal Enfield franchise, according to analysts at ICICI Securities.

 

Eicher stands well-positioned to sustain its growth momentum, backed by a strong brand, disciplined cost control, and prudent capital allocation. With tailwind expected from GST 2.0 reforms in the coming months, the brokerage firm continues to assign BUY rating on the stock. Eicher has a capital efficient business model & cash positive b/s. Analysts value Eicher at ₹7,850 (SOTP basis).

 

Eicher delivered its strongest-ever quarterly results in Q2FY26, with consolidated revenue rising 45 per cent YoY to ₹6,172 crore and profit after tax up 24.5 per cent to ₹1,370 crore, supported by robust festive demand, successful product refreshes and sustained growth in both, RE and VECV, businesses. However, impacted by higher input cost and elevated marketing spend, EBITDA margin contracted 120 bps YoY to 24.5 per cent, according to analysts at Choice Institutional Equities.  The brokerage firm believes near-term margin pressure may impact profitability in the upcoming quarter, though strong demand and product mix should support growth momentum. Currently, Eicher is trading above analysts’ target price of ₹7,020.