Eicher Motors surged 4.67% to Rs 7,730 at 15:19 IST on BSE on reports that a foreign brokerage has initiated coverage on the stock with an outperform rating and an aggressive target.
Meanwhile, the S&P BSE Sensex was up 12.49 points or 0.05% at 25,075.16.
On BSE, so far 7,695 shares were traded in the counter as against averaged daily volume of 2,269 shares in the past one quarter.
The stock hit a high of Rs 7,750 so far during the day, which is a record high for the counter. The stock hit a low of Rs 7,458 so far during the day. The stock hit a 52-week low of Rs 2,975 on 21 August 2013.
The stock had outperformed the market over the past one month till 26 June 2014, advancing 2.51% compared with the Sensex's 1.4% rise. The scrip had also outperformed the market in past one quarter, spurting 27.45% as against Sensex's 13.43% rise.
The large-cap company has equity capital of Rs 27.09 crore. Face value per share is Rs 10.
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As per reports, the foreign investment bank's 12-month target of Rs 9000 represents an over 20% upside in the stock from Thursday's close of Rs 7400 on NSE.
The investment bank expects Eicher Motors to clock a near 50% CAGR (compound annual growth rate) jump in its consolidated earnings, as per reports.
Eicher Motors is trading at 21 times its calendar year 2015 earnings, which is attractive, the brokerage added.
Eicher Motors' consolidated net profit surged 42% to Rs 139.12 crore on 11.2% growth in net sales to Rs 1899.91 crore in Q1 March 2014 over Q1 March 2013.
Eicher Motors, is the flagship company of the Eicher Group in India and a leading player in the Indian automobile industry. Its 50-50 joint venture with the Volvo group, VE Commercial Vehicles, designs, manufactures and markets reliable, fuel-efficient commercial vehicles of high quality and modern technology, engineering components and provides engineering design solutions. Eicher Motors manufactures and markets the iconic Royal Enfield motorcycles.
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