To cater the increasing demand, the Eicher's board has approved a proposal for capacity expansion at Royal Enfield, taking annual production capacity upto 2 mn units from the existing 1.46 mn units.
Eicher Motors stands well-positioned to sustain its growth momentum, backed by a strong brand, disciplined cost control, and prudent capital allocation, believe analysts at ICICI Securities.
Analysts remain upbeat on Eicher Motors owing to domestic demand aided by government-led consumption measures, such as income tax relief/ GST rate cuts; a rural demand uptick, and new model launches.
Auto stocks in demand following reports of long queues and brisk bookings at auto dealerships on the first day of the GST 2.0 rollout, with leading brands reporting marked spikes in consumer activity.
Eicher Motors share price; the parent company of Royal Enfield, a global manufacturer of middleweight motorcycles, hit a new high of ₹6,109 in intra-day trade on Tuesday.
Eicher Motors posted weaker-than-expected Ebitda margin, which contracted 190 basis points (bps) to 24.2 per cent in Q3FY25, from 26.1 per cent a year ago
In one month, Eicher Motors has rallied 9%, as compared to 1.4% in the BSE Auto index, while Bajaj Auto, Hero MotoCorp and TVS Motor Company were down in the range of 4% to 6%.
Nuvama analysts said December is expected to bring encouraging results for the industry. PVs are predicted to achieve double-digit growth, propelled by strong performances from M&M, Maruti & Toyota
On the bourses, M&M has gained about 6% over the past month, while Uno Minda has surged more than 6%. On the flipside, TVS Motor dropped over 1%. In comparison, BSE Auto index declined nearly 2.5%