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Shares of Eicher Motors jumped as much as 6.11 per cent to Rs 29,116.70 on strong Q1 results.
After opening strong at Rs 27,689.95 against the previous close of Rs 27,438.75, the stock touched intraday high of Rs 29,116.70 and a low of Rs 27,651. At 3 pm local time, the shares were trading up 5.5 per cent at Rs 28,949.
The automaker had on Thursday posted about 25 per cent jump in June-quarter net profit.
Nomura believes Eicher is on track to achieve guidance; key upside risk is the success of new 650cc models which will be launched in November. It has cut the price target to Rs 29,344 from Rs 32,743, and has maintained “neutral” rating.
The brokerage says downside risks include cost hike due to ABS (anti-lock braking system) and BS-6 (Bharat stage emission standard) that may impact demand to some extent like in Karnataka and the success of competitive launches by Mahindra-Jawa, Bajaj-Triumph and Harley Davidson.
Citi has maintained “buy” rating, saying do not change volume estimates for Royal Enfield but cut the margins by 80-130 bps due to higher staff costs and slight commodity cost pressures. It has cut the price target to Rs 33,800 from Rs 36,500.
Morgan Stanley believes the stock is set to outperform as new bikes gets launched in September 2018 and monthly run rate inches up. It has kept 'overweight' rating with a price target of Rs 34,104. More than 69,000 shares traded vs 30-day average of 52,456 shares.
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