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Eicher Motors hits new high

In June, the stock has rallied 21% compared to about 5% gain in CNX Nifty.

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SI Reporter Mumbai
Last Updated : Jun 30 2014 | 10:31 AM IST
Eicher Motors is trading higher by 4% to Rs 8,060, extending its 8% rally in past two days, after the government on June 25 announced the decision to continue with low excise duty for six months till December 31 for auto sector.

The stock opened at Rs 7,816 and touched high of Rs 8,074, also its new high on the NSE. A combined 15,720 shares changed hands on the counter so far on NSE and BSE.

Shares in Eicher Motors, which owns Royal Enfield, has rallied 21% in the month of June after the company reported 86% rise in total motorcycle sales to 25,011 units in May 2014 over May 2013. The benchmark CNX Nifty has gained nearly 5% during the month.

Meanwhile, Credit Suisse, a foreign brokerage, has initiated coverage on the stock with an 'outperform' rating and an aggressive 12-month target of Rs 9,000.

As per reports, the investment bank expects Eicher Motors to clock a near 50% CAGR (compound annual growth rate) jump in its consolidated earnings.
 

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First Published: Jun 30 2014 | 10:28 AM IST

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