Buy Eicher Motors Limited For Target Rs. 4550-4800 - Religare Broking Ltd
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TECHNICAL OUTLOOK
We are seeing noticeable traction in the auto space and Eicher Motor is trading largely in tandem with the trend.
It has reclaimed the record high after spending nearly over a year in a corrective phase.
And, it is currently hovering in a narrow range around its record high, forming a base around its previous breakout zone.
This consolidation is a fresh buying opportunity for those who missed the chance earlier.
FORWARD PE BAND (x)
TECHNICAL CHART : WEEKLY
INVESTMENT RATIONAL
Eicher Motors is a leading player in the premium range of motorcycles while it also has presence across the commercial vehicle segment through its partnership with VECV.
With the industry witnessing gradual shift towards 125+cc category of motorcycles, Eicher will be a direct beneficiary of such a trend. Also, in line with the growing EV demand, Eicher will leverage its Stark Future investment with is aimed to accommodate the EV demand in the commercial vehicle segment
The company has been able to withstand steep competition from its peers in its core segment mainly due to the demand for the premium motorcycles segment which has resulted with overall YTD volume growth of ~13.4%.
It recently launched 2 motorcycles in 450cc category while it has few more launches which shall strengthen its position in its category, aiding in volume and realizations growth
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SEBI Registration number is INZ000174330
