Eicher Motors pops 3%, hits record high on strong Jan sales, robust outlook

Eicher Motors share price: Eicher Motors shares were in demand in an overall weak market on Monday, February 3, 2025, as the scrip soared as much as 3 per cent to hit a fresh all-time high (record high) of Rs 5,500 per share on BSE.   Notably, Eicher Motors share has rallied 8.71 per cent in the last five trading sessions. 

 

The sharp rise in Eicher Motors share price was fuelled by healthy auto sales data in January, coupled with robust outlook, analysts said.

 

Eicher Motors’ total VECV sales surged 20.1 per cent annually to 8,489 units in January 2025, from 7,066 units in the same month last year.

 

The company’s total domestic sales jumped 21.1 per cent Y-o-Y to 7,872 units in January 2025, from 6,503 units in January 2024. The total exports, meanwhile, zoomed 26.8 per cent Y-o-Y to 450 units in January 2025, from 355 units in January 2024.

 

Motorcycle sales

 

The models with engine capacity upto 350cc soared 17 per cent Y-o-Y to 78,815 units in January 2025, from 67,620 units in January 2024.

 

On the other hand, models with engine capacity exceeding 350cc jumped 44 per cent annually to 12,317 units, from 8,567 units a year ago.

 

The company's international business saw a sharp surge of 79 per cent Y-o-Y to 10,080 units, from 5,631 units a year ago.

 

Analysts view

 

Analysts at ICICI Securities noted in the 2-W space, Royal Enfield at Eicher Motors outperformed as it surged about 20 per cent Y-o-Y. Export volumes were up healthy at 79 per cent Y-o-Y at Eicher Motors. 

 

“With revival in domestic volumes and recovery in exports, industry is well poised to handsomely outperform other vehicle categories,” ICICI Securities said.

 

Those at Motilal Oswal, too, noted that Royal Enfield posted a 20 per cent Y-oY growth, surpassing the estimate by 7 per cent.

 

“While several OEMs have shown healthy wholesale growth in January, we believe this is a function of normalising dealer inventory, as retail demand has not shown a pickup in any of the segments. The recent Budget has provided a much-needed boost for the revival of auto demand in FY26E,” analysts at Motilal Oswal said, in a note. 

"RE has multiple product launches planned for CY25, with growth expected in international markets. However, competing with Harley-Davidson and Triumph in developed markets will be crucial. We forecast RE’s volumes to grow mid-single digits in FY25/26E, with standalone Revenue/EBITDA growing at a 10 per cent CAGR over FY24-27E,” said Shridhar Kallani, research analyst of Auto at Axis Securities.

 

Kallani also said that VECV might see a slight volume decline short-term due to challenges, but its long-term growth remains strong, supported by execution capability and EV SCV entry.

 

“At the CMP, we find the stock fairly valued and recommend a Buy on Dips Strategy for the stock." Kallani added.

 

From a technical perspective, Eicher Motors has recently given a breakout and is currently trading near its all-time high. However, today’s session witnessed profit booking from the opening tick, indicating a potential short-term pullback.  "Given the current price action, we expect the stock to retrace towards 5,250, which aligns with a strong support zone. This level presents a good opportunity to enter fresh long positions. We recommend going long only around 5,250, aiming for an upside target of 5,750. A stop-loss should be placed below 5,000 on a daily closing basis to manage risk effectively," said Jigar S. Patel, senior manager of equity research at Anand Rathi.   Last checked, Eicher Motors’ market capitalisation stood at Rs 1,50,819.46 crore, according to BSE. The company falls under the BSE 100 category. 

 

At 9:50 AM, Eicher Motors share price was trading 2.10 per cent higher at Rs 5,501.70 apiece. In comparison, BSE Sensex was trading 0.91 per cent lower at 76,803.66 levels.