Eicher Motors share price touched a new record high of Rs 3,479.45 and Rs 3,480 per share on the BSE and NSE, respectively, intraday after gaining by around 3.5 per cent during Tuesday’s session. The stock has breached its earlier high of Rs 3,457.70, touched on August 19.
The counter in August so far has rallied nearly 13 per cent after the company reported strong earnings in the April-June quarter of the financial year 2022-23 (Q1FY23).
The surge in the stock price has also led to the rise in the market capitalization of Eicher Motors, as it inched towards Rs 1-trillion mark. At around, 01.40 PM, the market cap of the auto company was at Rs 93,858 crore in the intraday trade, when the stock price was 2 per cent higher to Rs 3430 apiece.
Eicher Motors’ total revenue from operations stood at Rs 3,397 crore, EBITDA (Earnings before interest, taxes, depreciation, and amortization) at Rs 831 crore, and profit after tax (PAT) at Rs 611 crore during the June-end quarter of FY23, according to company’s results filing.
The company’s two-wheeler segment – Royal Enfield (RE) ended the June quarter with its best ever performance in the international markets with total dispatches at 28,390 units, more than a 62 per cent increase over 17,493 in the same period last year; and a 30 per cent rise sequentially.
Eicher Motors under the Royal Enfield segment launched a new model ‘Hunter 350’ in India, which is termed a key business development for the company, said IDBI Capital in its report, adding further that the company continues to receive a highly encouraging response to this model.
Besides, the management has expressed high optimism on the export market and sounded growth outlook in the Indian market, the brokerage said while raising the volume and PAT estimates by 6 and 12 per cent for FY24 respectively and retained a Buy rating with a target of Rs 3,638 per share.
Gradual improvement in supply chain led by an alternate arrangement of suppliers, increasing presence in the underpenetrated market, digital focus, expanding RE presence in the international market, host of new and refresh launches augur well for RE to witness healthy growth in FY23, another domestic brokerage house Choice Choice Institutional Equities Research said in its report.