Eicher Motors continued to soar on Friday morning to hit a fresh all-time high of Rs 33,480, up by more than 1.5% since previous close.
Eicher Motors continued to soar on Friday morning to touch a new all-time high of Rs 33,480 up by more than 1.5% since previous close. Yesterday, Eicher Motor shares rose as much as 2.5% to hit the intraday high, and the previous all-time high of Rs 33,328 on NSE after the company was reportedly planning to make a binding offer to acquire the iconic Italian superbikes Ducati for $1.8 billion-$2 billion, according to a report in Economic Times.
Research and brokerage firm CLSA has retained a buy call on the stock and has raised the target to Rs 39,300 per share. Earlier, CLSA had a target of Rs 31,500 for the shares. This translates to upward revision of nearly 20%. CLSA believes that the EPS will now grow at a rate of a robust 29% CAGR for the next three years. Further, the brokerage firm said that the continued growth in order inflow for Royal Enfield provides confidence.
The shares of Eicher Motors have returned more than 50% in the year so far. Last week, the Gurgaon-based automaker reported a 22% rise in the sales for the month of August 2017. The total motorcycles sales for the month of August 2017 grew 22% to 67,977 units as compared to 55,721 units in the same month of previous fiscal.
The rise in the sales for August was due to the demand for its Royal Enfield motorcycles with capacity up to 350 cc, as shown in an exchange filing. There is an increase of 29% in the sales of the Royal Enfield bikes motorcycles with capacity up to 350cc as the company sold 63,637 units of it as compared to 49,481 units sold in the same month last year. However, the sales of models with capacity above 350 cc dropped 30% to 4,340 units versus 6,240 units in August 2016.
Earlier in June, that U.S. motorcycle maker Harley-Davidson and India’s Bajaj Auto Ltd were among companies preparing bids for Ducati, which is being put up for sale by German carmaker Volkswagen, reported Reuters.