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Eicher Motors skids on profit booking

Capital Market 

Eicher Motors slumped 4.10% to settle at Rs 18447.45 amid profit booking after a recent rally.

The scrip fell as much as 6.96% in intraday today. During the day, it traded in the range of Rs 17,984.50 and Rs 19,510.75.

On the BSE, 9358 shares were traded in the counter so far compared with average daily volumes of 9219 shares in the past two weeks.

Shares of Eicher Motors soared 22.06% in the past two trading sessions to settle at Rs 19,236.50 yesterday, 23 September 2019, from its close of Rs 15,759.50 on 19 September 2019.

Meanwhile, the S&P BSE Sensex was up 7 points or 0.02% to 39,097.14.

The market surged in the past two sessions after the Finance Minister Nirmala Sitharaman on Friday, 20 September 2019, slashed corporate tax rate to 22% without exemptions. The effective corporate tax rate after surcharge now stands at 25.17%. The step has significant positive implications for corporates' profitability, broader economy and market valuations.

As on 31 March 2019, Eicher Motors paid corporate tax of 34.43%.

The stock hit a 52-week high of Rs 28669 on 21 Sep 2018. The stock hit a 52-week low of Rs 15196.95 on 26 Aug 2019.

On a consolidated basis, the automobile company's net profit fell 21.6% to Rs 451.77 crore on a 6.8% decline in net sales to Rs 2361.24 crore in Q1 June 2019 over Q1 June 2019.

Eicher Motors (EML) is the listed parent of Royal Enfield, the global leader in middleweight motorcycles. In addition to motorcycles, Eicher has a joint venture with Sweden's AB Volvo - VE Commercial Vehicles (VECV) - which is driving modernization in India's commercial vehicle space, and in other developing countries. VECV has a complete range of trucks and buses.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, September 24 2019. 16:09 IST