New launches, exports gain captured in Eicher Motors' valuations

Aided by a 10 per cent increase in volumes and 5 per cent increase in realisations

The operational performance of Eicher Motors in the July-September quarter (second quarter, or Q2) surpassed Street expectations, leading to a 2 per cent gain in the stock’s trade on Monday. As the market leader in the premium two-wheeler category, the company exhibited margin expansion despite a decline in the sales mix.

Most brokerages have revised their margin and earnings estimates for the company, increasing them by up to 6 per cent for 2023-24 (FY24)/2024-25 (FY25) to account for the Q2 performance and higher other income.

Benefiting from a 10 per cent increase in volumes and a 5 per cent rise in realisations,