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Eicher Motors declines on foreign brokerage downgrade reports

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Capital Market
Last Updated : Mar 16 2016 | 11:28 AM IST

Eicher Motors fell 2.85% to Rs 18,995 at 11:12 IST on BSE on media reports that a foreign brokerage has downgraded the stock to 'underperform' from 'buy'.

Meanwhile, the S&P BSE Sensex was down 113.77 points or 0.46% at 24,437.40.

On BSE, so far 1,648 shares were traded in the counter as against average daily volume of 5,679 shares in the past two weeks. The stock hit a high of Rs 19,589.80 and a low of Rs 18,930.10 so far during the day. The stock had hit a 52-week low of Rs 13,930 on 27 April 2015. The stock had hit a record high of Rs 21,618.30 on 21 July 2015.

The large-cap company has equity capital of Rs 27.16 crore. Face value per share is Rs 10.

The foreign brokerage reportedly said that Eicher Motors stock has fully priced in strong Royal Enfield outlook. The foreign brokerage sees limited stock returns for Eicher Motors even on a 3 year view, reports suggested.

Eicher Motors is one of the four stocks that enter the Nifty 50 index with effect from 1 April 2016 following a semi-annual review of its indices announced by NSE in February 2016.

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On a consolidated basis, Eicher Motors' net profit rose 76.1% to Rs 270.80 crore on 45.9% growth in net sales to Rs 3247.91 crore in Q4 December 2015 over Q4 December 2014.

Eicher Motors (EML) is the flagship company of the Eicher Group. EML is one of the leading players in the Indian automotive space. EML's joint venture with the Volvo group, VE Commercial Vehicles, designs, manufactures and markets fuel-efficient trucks and buses. It owns the iconic Royal Enfield motorcycle business, which leads the premium motorcycle segment in India.

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First Published: Mar 16 2016 | 11:10 AM IST

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