Eicher Motors, the legendary manufacturer of Royal Enfield, set the stock market on fire this Wednesday. Shares surged over 6% to close at ₹7,766.50 following a stellar Q3FY26 performance. Global brokerage giants, impressed by the company’s robust margins and ambitious expansion plans, have issued strong ‘Buy’ ratings with targets as high as ₹8,800.

The Growth Engine: The December quarter saw Eicher Motors exceeding market estimates with a 25-30% year-on-year growth in EBITDA and PAT. Royal Enfield’s volume growth spiked by 21%, signaling strong demand in the premium biking segment. What’s even more exciting for investors is the company’s roadmap to scale its production capacity to 2 million units by FY28.

Analyst Recommendations:

• Jefferies: Maintaining a ‘Buy’ rating, Jefferies has set a bullish target of ₹8,800, citing strong 25% volume growth projections for FY26-27.
• Citi Research: Issued a ‘Buy’ rating with a target of ₹8,300, praising the company’s “positive margin surprise” and value engineering.
• CLSA: Gave an ‘Outperform’ rating with a target of ₹8,066, buoyed by the 25.5% EBITDA margin and GST benefits.
• Macquarie: Stood slightly cautious with a ‘Neutral’ rating and a target of ₹7,296, citing that the current valuation looks a bit stretched.

With the dominant position of Royal Enfield in the domestic market and a favorable product mix, most experts believe that Eicher Motors is well-positioned for a long-term rally despite high current valuations.