Eicher Motors fell 1.91% to Rs 20,766 at 11:04 IST on BSE on reports a foreign brokerage downgraded the stock to neutral.
Meanwhile, the BSE Sensex was down 20.46 points, or 0.07%, to 27,940.73.
On BSE, so far 2,242 shares were traded in the counter, compared with an average volume of 29,974 shares in the past one quarter.
The stock hit a high of Rs 21,171 and a low of Rs 20,707 so far during the day. The stock hit a record high of Rs 21,580.65 on 3 July 2015. The stock hit a 52-week low of Rs 8,190.55 on 14 July 2014.
The stock had outperformed the market over the past one month till 13 July 2015, rising 21.68% compared with 5.81% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 31.87% as against Sensex's 3.73% fall.
The large-cap company has an equity capital of Rs 27.14 crore. Face value per share is Rs 10.
According to reports, the brokerage said that growth potential has been already priced in the Eicher Motors stock as it has outperformed the market by 35% in last two months. At best only single-digit returns can be expected. The brokerage further said that the next leg-up for Eicher Motors can only be if it finds success in 2-3 large export markets on which there is limited visibility.
Eicher Motors will announce Q2 results on 21 July 2015. On a consolidated basis, the company's net profit rose 40.4% to Rs 195.28 crore on 33.3% growth in net sales to Rs 2532.97 crore in Q1 March 2015 over Q1 March 2014.
Eicher Motors (EML) is a leading player in the Indian automotive space. It owns the iconic Royal Enfield motorcycle business, which leads the premium motorcycle segment in India. EML's joint venture with the Volvo group, VE Commercial Vehicles, designs, manufactures and markets reliable, fuel-efficient trucks and buses; and is leading the path in driving modernization in commercial transportation in India and other developing markets. EML's 50:50 strategic joint venture with US based Polaris Industries Inc., Eicher Polaris is in start-up phase, and is currently designing and developing, and will soon manufacture and sell a full new range of personal vehicles.
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