Eicher Motors jumped 3.45% to Rs 7,995 at 13:45 IST on BSE on reports a foreign brokerage raised target price on the stock to Rs 8,825 per share.
Meanwhile, the BSE Sensex was up 248.63 points, or 0.99%, to 25,348.55.
On BSE, so far 7,998 shares were traded in the counter, compared with an average volume of 2,382 shares in the past one quarter.
The stock hit a high of Rs 8,124 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 7,816 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 27 June 2014, rising 9.20% compared with 2.24% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 30.71% as against Sensex's 12.99% rise.
The large-cap company has an equity capital of Rs 27.09 crore. Face value per share is Rs 10.
The target price of Rs 8,825 per share is 10.38% premium to the ruling market price.
According to reports, the foreign brokerage expects the Eicher Motors stock to sustain performance as it sees no let up to earnings surprise. It expects the company to sustain premium multiples on its business constituents due to superior growth rates and better financial position [especially commercial vehicles (CVs)]. The brokerage's revised target is driven by changes to EPS forecasts by 4-5% over next two years (7-13% ahead of street), increased volume assumptions (CV exports, motorcycles) and roll over by three months to March 2016.
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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