Shares of Eicher Motors, the father or mother firm of Royal Enfield, surged nearly 4% on Tuesday, making it the highest performer on the NSE Nifty 50. The inventory was buying and selling at Rs 3,500 as of noon, marking a 3.35% enhance from its closing worth on Monday.
This upward pattern adopted world brokerage agency Jefferies expressing a bullish outlook on Eicher Motors’ prospects. The optimism stemmed from decreased competitors considerations, rising demand for two-wheelers, Eicher Motors’ premium choices aligning with Indian shoppers’ altering tastes, and development within the firm’s exports.
Jefferies additional upgraded its goal worth for Eicher Motors to Rs 4,150 from the earlier Rs 4,000. This revised goal worth suggests a possible 22.5% rise within the inventory’s worth from its closing worth on Monday.
The brokerage agency additionally underscored Royal Enfield’s robust place to capitalize on the potential surge in demand for two-wheelers in India. The bike model owned by Eicher Motors is understood for its distinctive choices and sturdy model popularity. As Indian shoppers more and more search premium bikes, Royal Enfield stands to achieve.
Relating to valuation, Jefferies adjusted its evaluation of Royal Enfield to 25 instances its price-to-earnings ratio (PE), up from the earlier estimate of 24 instances PE. The industrial car enterprise is valued at 5.5 instances its price-to-book ratio (PB) for FY25.
It is vital to notice that these views and proposals are these of Jefferies and potential traders are suggested to seek the advice of with a professional dealer or monetary advisor earlier than making any buying and selling or funding choices.
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