Motilal Oswal has given Buy recommendation for Eicher Motors recommended buy rating on the stock with a target price of Rs 3600 in its research r with a target price of Rs. 3600 in its research report issued on Aug 13, 2022

Motilal Oswal’s research report on Eicher Motors

EIM hosted the investing community at Royal Enfield Global Headquarters & India Tech Centre. The entire senior management team for Motorcycles and the CV business presented their strategy and focus areas (link to the webcasts and presentation). Royal Enfield (RE) is rebalancing and focusing on balancing profit (growth) and profitability (margin). Its plan to achieve this balance pivots around: a) expanding the addressable market in India (through new products and by targeting new customers), b) expanding its international business, and c) continued ramp-up in non-Motorcycle revenue.

Outlook

The stock trades at 29.4x/21.3x FY23E/FY24E consolidated EPS. We maintain our Buy rating with a TP of INR3,600 (Sep’24E SoTP).

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