Shares of Eicher Motors climbed 4.13% to Rs 20,030.95 after a foreign brokerage reportedly upgraded its rating on the stock to buy from sell and raised target price to Rs 23,000.
According to reports, the brokerage said that the de-rating and downgrade cycle is coming to an end and there is a high conviction of sequential volume growth for Royal Enfield in second half of FY20. With limited price increases from BS-VI, the brokerage expects volume growth to turn positive in FY21 on a major product refresh and new model launches.The company's total motorcycles sales fell 17% to 59,500 units in September 2019 compared with 71,662 units in September 2018.
Shares of Eicher Motors jumped 10.91% in five trading sessions from its previous closing low of Rs 18,060.05 on 10 October 2019.
Meanwhile, the S&P BSE Sensex was up 78 points or 0.20% to 38,676.86.
On the BSE, 6,286 shares were traded in the counter so far compared with average daily volumes of 3,702 shares in the past two weeks. The stock hit an intraday high of Rs 20,066.80 and an intraday low of Rs 19,451.10 so far during the day.
The stock hit a 52-week high of Rs 25,300 on 20 November 2018. The stock hit a 52-week low of Rs 15,196.95 on 26 August 2019.
Eicher Motors' consolidated net profit tanked 21.6% to Rs 451.77 crore on a 6.8% decline in net sales to Rs 2,361.24 crore in Q1 June 2019 compared with Q1 June 2018.
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Eicher Motors is a parent of Royal Enfiled that offers middleweight motorcycles in India. Royal Enfield operates in India, and over 40 countries around the world. The two-wheeler is engaged in manufacturing automobile products and related components and operates in business verticals, including motorcycles, commercial vehicles and personal utility vehicles.
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