Eicher Motors Limited is an Indian multinational automotive company which manufactures motorcycles and commercial vehicles, headquartered in New Delhi. Eicher is the parent company of Royal Enfield, a manufacturer of middleweight motorcycles.
The Eicher Group has diversified business interests in design and development, manufacturing, and local and international marketing of trucks, buses, motorcycles, automotive gears, and components. Eicher has invested in the potential growth areas of management consultancy services, customised engineering, and maps and travel guides. Royal Enfield Motors, the motorcycle manufacturing subsidiary, is a part of Eicher Motors.
Quarterly Growth
Eicher Motors has reported that its consolidated net profit has jumped by 76 percent to Rs 657 crore in the September quarter, supported by enormous sales across domestic and international markets. The company had reported a net profit of Rs 373 crore for September quarter in the previous fiscal year. Total revenue from sales & operations has increased to Rs 3,519 crore from Rs 2,250 crore in same quarter of the last year.
Royal Enfield has sold 2,03,451 motorcycles in the September quarter, which is up by a fantastic 65 percent from the same quarter of the last year. Eicher Motors Managing Director Siddhartha Lal said the company’s overall performance was very encouraging in the first half of current fiscal year.
Notable Highlights
The outlook for the company is bright which is supported by high demand for bikes, new products, preference for premium bikes, momentum in export demand, significant improvement in the CV segment, and an improvement in fleet utilisation.
The management has emphasized that supply-chain constraints because of the shortage in semiconductor chips are soothing and the situation is expected to advance into the coming months.
The momentum in demand continues to be strong and the company has a very healthy order book. Inquiry and booking rates for its New Meteor 650, Hunter 350, and the New Classic are very encouraging.
New products will continue to be key growth drivers and the company has a new array of products in the pipeline for the current fiscal. The company has just launched Hunter 350 at affordable price tags. The company has a rigid pipeline of new products for the next 5 years and beyond for global consumers.
The strong demand is authenticated by the reality that in October the company registered the highest ever sales in a month with 80,792 motorcycles and a growth of 80 percent over the same period last year.
A tremendous growth is seen in exports, and the company continues to focus on the expansion of its network. They have 880 outlets, including multi-brand outlets. The management is confident of the export performance going onwards.
Technical Analysis
Eicher Motors could make a breakout over its previous lifetime high of Rs 3347 back in September 2022. However, the stock faced stiff resistance moving upwards. The 161.8% retracement level at Rs 4646 is fairly achievable in the coming months. Investors and traders can find long trades on the back of a fantastic first half of the year given out by the company. Currently, MFI stands at 34 points which is very close to being oversold, maybe the stock will rebound as it makes a swing low in the on-going bull run.
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