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Shares of India's Eicher Motors jumped 7% on Thursday, set for their best day in a year, after the motorcycle maker's better-than-expected quarterly profit indicated, according to analysts, that the toughest phase of competition was over.

The stock was the top gainer on both the benchmark Nifty 50, which was flat, and the Nifty auto index, which is down 0.25%.

Eicher's shares were last trading 7.2% higher at 4,922 rupees and were on track for their best day since Dec. 4, 2023.

Analysts at Jefferies retained their "buy" rating on the stock and noted that the "toughest phase of competition is behind" for Royal Enfield, which it also expects to benefit the most from the shift to premium models.

Morgan Stanley and Emkay Global said they liked the company's strategy of pursuing volume growth over margin expansion, citing a flurry of launches in the last few months. Emkay upgraded the stock three notches to "buy" from "sell."

At least three analysts upgraded the stock, according to LSEG data, while eight lifted their price target.