Highlighting takeaways from the management meet, Motilal Oswal said:Eicher Motors’ domestic demand momentum remains healthy, especially in the 350cc segment, where the demand currently outstrips supply.
Conversely, the demand in the 350cc+ segment weakened following the GST increase for this category, but is now gradually recovering due to multiple product interventions by Royal Enfield.
However, exports remain challenging for the company as the outlook for regions such as Europe, the US and Thailanad — which account for half of Eicher Motors’ exports — remains challenging, the brokerage said.The immediate risk posed by the ongoing geopolitical conflict is potential gas supply shortage, which could disrupt production in the near-term if the situation persists, Motilal Oswal added.
The automaker’s management emphasised that its continued focus is on profitable volume growth rather than margins.
Owing to the global uncertainties, the stock has corrected around 17% from its peak and now appears fairly valued at 29.8 times its financial year 2027 estimated price to earnings, and at 26 times its earnings estimates for financial year 2028, Motilal Oswal said.
Of the 40 analysts who have coverage on the stock, 25 have a “buy” rating, 11 have a “hold” rating and four have a “sell” rating.
Eicher Motor shares were down 0.7% at ₹6,763 apiece around 9.45 am on Monday. The stock has declined 13.5% in the past month.
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