Success of new launches, margin improvement to drive Eicher Motors

September volumes were better than estimates led by the new launch Hunter 350

The Eicher Motors stock has been on an uptrend since its lows in May and has been among the top outperformers within the auto sector with gains of 34 per cent year-to-date. Strong demand for new launches, rising exports and margin expansion expectations have led to earnings upgrades. The near term trigger for the stock, which fell 5.7 per cent on Friday, would be volume growth aided by festive season sales and response to upcoming launches.

The company’s wholesale volumes for September was better than expected both for the two wheeler business as well as the medium and heavy commercial