The parent business of renowned motorbike manufacturer Royal Enfield, Eicher Motors, has consistently outperformed the Indian stock market. Over the years, the company has experienced both highs and lows, but its tenacity has kept investors interested in its shares. Eicher Motors appears to have a bright future ahead of it given that the automotive industry is anticipated to increase in the upcoming years. This article will examine if Eicher Motors is a solid stock to purchase by looking more closely at their share price goal for the years 2023 to 2030. So buckle up and let’s take a voyage through the world of shares of Eicher Motors.
In comparison to the same quarter last year, Eicher Motors Ltd. recorded a 48% increase in its consolidated net profit, which reached Rs. 905 for the fourth quarter. Operations’ revenue increased 19% year over year (YoY) to Rs 3,804 crore, above the poll’s prediction of roughly Rs 3,718 crore. The firm posted its highest-ever quarterly sales in the March quarter, making this the fifth consecutive quarter in which it has done so.EBITDA for the quarter totaled Rs 934 crore, an increase of 23% from Rs 757 crore in the corresponding quarter of the prior fiscal year.
Latest news about EICHER MOTORS
➤The execution of Royal Enfield’s electric vehicle (EV) plan would require an investment of between Rs 250 and Rs 300 crore. Royal Enfield is the top middleweight motorcycle manufacturer in India. “25-30% of Royal Enfield’s Rs 1,000 crore capital allocation for FY24 will go towards electric vehicles,” a source in the sector who asked to remain anonymous said.
➤ “Eicher Motors had a fantastic year this year. Our best-ever business and financial performance, both at Royal Enfield and VE Commercial Vehicle (VECV), was achieved thanks to the overall stabilization of the supply chain, markets, and organization, as well as strong progress on all key priorities, according to Siddhartha Lal, MD of Eicher Motors. 2.14 lakh units were sold by Royal Enfield during the quarter, an increase of 18% over the same time in FY22. According to Govindarajan, CEO of Royal Enfield, “With the launch of our new motorcycles, the Hunter 350 and Super Meteor 650, we have been able to bring in a completely new set of consumers.”
➤The Board has also authorized a financial allocation for capital expenditures (capex) of Rs 1,000 crore for FY24, which also covers the investment in a manufacturing facility for electric vehicles, product research, and the creation of new products under the portfolio of internal combustion engines.
➤The company’s board has also proposed a final dividend for the fiscal year ending March 2023 of Rs 37 per stock. Within 30 days after the date of the shareholders’ approval, the dividend will be paid.
Below are the trading platforms that you can use to purchase Eicher Motors shares:
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According to the table, EICHER MOTORS share prices are expected to experience fluctuations throughout 2023. The maximum price for the stock is predicted to be ₹5,735.46 in December 2023, while the minimum price is expected to be ₹2,260.78 in May 2023. This represents a significant growth percentage from the minimum to the maximum price.
Looking at the overall trend, the stock is expected to remain bullish, with an uptrend projected in the latter half of the year. The share price is expected to rise steadily from September 2023 to December 2023, with a substantial increase in November and December.
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The table provides an outlook on the EICHER MOTORS share price target for the year 2024, and it reveals a positive growth trend. The maximum share price target is expected to be ₹8,029.89 in December 2024, while the minimum share price target is predicted to be ₹4,161.15 in May 2024. This shows a significant variance in the share price target between the months, indicating potential volatility in the market. As per the data, the overall trend for EICHER MOTORS shares seems to be positive, indicating potential growth opportunities for investors in 2024.
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Looking at the EICHER MOTORS share price target for 2025, the table indicates a continued growth trend, with the maximum share price target predicted to be ₹9,740.38 in December 2025 and the minimum share price target of ₹5,652.25 in May 2025. This indicates that there may be considerable volatility in the market, and investors should be cautious before making any investment decisions.
Additionally, the average target for EICHER MOTORS shares in 2025 seems to be bullish, with an expected upside potential for investors. However, it’s important to note that share price predictions are based on various factors and should be taken as an estimation rather than a guarantee.
|Year||Maximum Price||Minimum Price|
Based on the given data, EICHER MOTORS share price is expected to fluctuate between ₹4,772.79 and ₹10,431.95 from 2026 to 2030. The company’s share price is expected to reach a maximum of ₹10,431.95 in 2028, which is significantly higher than the maximum price targets in the previous years. However, the minimum price target for 2026 is lower than the minimum price target in 2025. Therefore, it is essential to consider the company’s performance, industry trends, and global economic conditions while investing in EICHER MOTORS. Overall, based on the historical data and market analysis, the average target for EICHER MOTORS shares is expected to have an upside potential over the coming years. However, it is recommended to do thorough research and consult with financial experts before making any investment decisions.
Financial Condition of Eicher Motors: Last 5 years
|Profit before tax||3,115.65||3,297.29||2,354.89||1,798.39||2,202.51|
|Price to earning||39.47||25.45||19.57||52.84||40.07|
Eicher Motors has shown impressive growth over the last five years, as evident from its financial bank statement. The company’s sales revenue grew from a minimum of 8,964.96 crore in March 2018 to a maximum of 10,297.83 crore in March 2022, indicating a percentage growth of approximately 15%. Similarly, the operating profit grew from 2,808.63 crore in March 2018 to 2,177.57 crore in March 2022, with a minimum of 1,783.23 crore in March 2021. Eicher Motors’ net profit has also witnessed steady growth from 1,959.67 crore in March 2018 to 1,676.60 crore in March 2022, with a maximum of 2,202.73 crore in March 2019. With consistent growth in revenue, profit, and EPS, Eicher Motors is a promising company with a strong financial track record.
Sharekhan has given a buy call on Eicher Motors Ltd. According to him, you can continue buying Eicher Motors share with a target price of Rs3860.
The stock was downgraded by Motilal Oswal to “Neutral,” with a target price of Rs 3,650. This is a 7% increase over the last closing price. It said that the value of 24.5X/19.3X substantially represents the anticipated volume and margin recovery but does not account for the possible risk from the impending releases of BajajTriumph mid-size bikes in India and other international countries. Therefore, Nuvama said, “we lower our rating from Buy to Neutral.”
Eicher Motors still has a “Buy” rating from Jefferies, although the stock is now lower on the list.
The overseas brokerage estimates a 17% increase from the previous closing price and sets the price objective at Rs 4,000. The goal has increased from Rs 3,800, valued at 25X FY25E PE for RE and 5X FY25E PB for the commercial vehicle sector, according to the brokerage. “We continue to like Eicher as we see tailwinds of 2W demand recovery, industry premiumization, and growth in exports,” it stated in a report.
Buy | Target: Rs 3,850 | Potential Gain: 13% | View: 12 Months Nuvama
Nuvama rates Eicher Motors as a “Buy,” describing it as a well-run machine. It anticipates a strong profits CAGR of 19% during the period of FY23 to FY25E, underpinned by an uptick in sales, gains in market share, and margin improvement. The SoTP-based goal is 20X FY25E P/E for the CV company and 27X FY25E P/E for the 2W business, according to the local brokerage.
Eicher Motors is given a “Sell” rating by Kotak in anticipation of future fiercer competition.
“With anticipated launches from Bajaj-Triumph and Hero-Harley in the >250 cc motorcycle segment, the competitive intensity is expected to increase, which may weigh on the company’s growth prospects,” the brokerage said. Due to greater upfront expenditures and the persistent influence of some states, the demand recovery in RE’s domestic portfolio (ex-Hunter) remained subpar despite the debut of Hunter 350.
What is Eicher Motors’ current stock price?
As of May 2023, Eicher Motors’ stock price is 3596.15 INR per share.
What has been Eicher Motors’ historical stock price performance?
Over the past five years, Eicher Motors’ stock price has fluctuated between a high of 23,863.93 INR in 2030 and a low of 2,260.78 INR in 2023.
While no one can predict the future with certainty, analysts expect Eicher Motors’ stock price to continue to grow over the next few years, with a projected share price target of 10,000 INR by 2025.
What factors will contribute to Eicher Motors’ growth?
Several factors, such as increasing demand for automobiles in India, the company’s strong financial performance, and ongoing investments in research and development, are expected to contribute to Eicher Motors’ growth over the next few years.
Are there any risks associated with investing in Eicher Motors?
Like any investment, there are risks associated with investing in Eicher Motors. Some of these risks include competition in the automotive industry, economic downturns, and changes in government policies.
How can investors mitigate risks when investing in Eicher Motors?
Investors can mitigate risks associated with investing in Eicher Motors by diversifying their portfolio, researching the company and industry, and consulting with a financial advisor.
How does Eicher Motors’ financial performance look in recent years?
Eicher Motors has had a strong financial performance in recent years, with steady revenue growth and consistent profitability. However, like all companies, its financial performance can be affected by various factors such as economic conditions and industry competition.
Does Eicher Motors pay dividends?
Yes, Eicher Motors pays dividends to its shareholders. In 2023, the company will pay a dividend of 37 INR per share.
Is Eicher Motors a good stock to buy?
Whether Eicher Motors is a good stock to buy depends on your investment goals and risk tolerance. While there are risks associated with investing in any stock, Eicher Motors’ strong financial performance and projected growth make it an attractive option for many investors. However, it is always recommended to do your research and consult with a financial advisor before making any investment decisions.
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With a turnover growth rate of 2.72% and a profit growth rate of 1.82% over the past five years, Eicher Motors has shown continuous growth. PAT for the company has also been rising significantly, reaching a high of 2,202.73 crores in FY2019–20. According on the available data, the share price of Eicher Motors is anticipated to range between a maximum of 23,863.93 and a minimum of 4,056.87 by the year 2030. Shares of Eicher Motors may be a wise option for individuals seeking long-term growth prospects because to their solid financial position, which includes an OPM of 21.15% and a payout ratio for dividends of about 34%. Overall, it is worth thinking about based on the company’s financial performance and prospects. Eicher Motor’s shares for investment in the coming years.
What did we learn?
- 1 Latest news about EICHER MOTORS
- 2 How to purchase Eicher Motors shares?
- 3 EICHER MOTORS Share Price Prediction: 2023 to 2030.
- 4 Financial Condition of Eicher Motors: Last 5 years
- 5 Eicher Motors share price target by Experts
- 6 FAQS
- 6.1 What is Eicher Motors’ current stock price?
- 6.2 What has been Eicher Motors’ historical stock price performance?
- 6.3 What is Eicher Motors’ projected share price target for 2023-2030?
- 6.4 What factors will contribute to Eicher Motors’ growth?
- 6.5 Are there any risks associated with investing in Eicher Motors?
- 6.6 How can investors mitigate risks when investing in Eicher Motors?
- 6.7 How does Eicher Motors’ financial performance look in recent years?
- 6.8 Does Eicher Motors pay dividends?
- 6.9 Is Eicher Motors a good stock to buy?
- 7 Conclusion