While registering steady growth on an annual basis, Eicher Motors lagged in quarterly comparison. The two-wheeler segment displayed steady growth despite facing the seasonal backlash, leading to lower footfall during the quarter, however, aided by higher ASP, the company registered healthy revenue growth during the quarter.
Revenue from operations in the reporting period rose 7% year-on-year (YoY) to Rs 4,205 crore.
During the quarter, Royal Enfield recorded sales of 2.25 lakh motorcycles as compared to 2.29 lakh units sold during the same period in FY24.
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The company said that the iconic Royal Enfield marked its foray into electric mobility with a new EV brand – the Flying Flea. The debut featured two models: the Classic-styled Flying Flea C6 and the Scrambler-styled Flying Flea S6.
After the results, hereβs how brokerages have viewed the results:
Citi: Buy| Target price: Rs 5,350
Citi maintained its buy call on the stock and cut the target price to Rs 5,350 from Rs 5,500.
EBITDA was slightly below the estimates in the second quarter due to increased marketing spends. The focus was on volume growth and not just the margins. Citi increased volume estimates for Royal Enfield over FY25-27 acknowledging better demand, supported by enhanced marketing activities.
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Goldman Sachs: Buy| Target price: Rs 5,400
Goldman Sachs maintained a buy rating on the stock with a target price of Rs 5,400.
Q2 was in-line as the product cycle, coupled with demand visibility represent good risk reward. Goldman liked the new product launch cycle and demand visibility on the recently launched models at Eicher. The focus is now on building back inventory by following Replenishment model. Bullet 350 Battalion Black variant helped the company to address signs of decline arising from customer indecisiveness.
Nuvama: Buy| Target price: Rs 5,500
Nuvama has upgraded the stock to buy rating from an earlier while increasing the target price to Rs 5,500 from Rs 4,500.
Domestic sales of Royal Enfield edged down 1% YoY in H1FY25, and Nuvama expects a strong recovery with a 12% YoY jump in H2FY25 led by strong festive demand, sharper focus on key models (Classic, Bullet), new products and marketing push. Hence, FY25β27 revenue/EPS forecast has been increased by up to 8%/6%.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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