Auto major Eicher Motors has reported a robust performance in its third-quarter (Q3) results, leading to a massive rally in its stock price. On February 11, the shares soared over 6%, emerging as the biggest gainer on the Nifty 50 index. The positive sentiment is driven by a strong surge in Royal Enfield sales and improved margin outlook.

Financial Performance at a Glance:

• Revenue: Grew by 21% year-on-year to ₹61.1 billion.
• Sales Volume: Increased by 21%, reaching approximately 329,000 units.
• EBITDA: Witnessed a 30% YoY growth with margins expanding to 25.5%.

Brokerage Upgrade: Following the stellar results, brokerage firm EMKAY has upgraded the target price for Eicher Motors to ₹7,500 from the previous ₹6,900. Experts attribute this upgrade to operating leverage, strict cost controls, and a healthy pipeline of new products. Despite the high valuation, the brokerage maintains an ‘ADD’ rating, anticipating double-digit growth in the coming fiscal years.