Eicher Motors Shares Hit New 52-Week High, Surging 17% in November; Here’s the Driving Force

Eicher Motors shares have achieved a fresh 52-week high, showcasing a remarkable 17% surge in November thus far. In 8 out of the 10 trading sessions this month, the stock has closed positively, with today’s session standing out with an impressive 5.57% rally. With 10 more trading sessions ahead, the stock is currently just 1% away from reaching its all-time high of ₹3,889.

The surge in Eicher Motors’ stock can be attributed to the company’s robust sales performance. In October, the company reported a 2% growth in sales, reaching 76,075 units for models with engine capacities up to 350cc. For engine capacities exceeding 350cc, sales reached 8,360 units, indicating a notable 13% increase.

Combining the sales of motorcycles with engine capacities up to 350cc and those exceeding 350cc, the total sales in October 2023 amounted to 84,435 units, reflecting a 3% growth compared to October 2022. However, the international segment saw a decline in sales, dropping to 3,477 units in October from 5,707 units in the same month of 2022, marking a 39% fall.

Eicher Motors’ Royal Enfield continues to dominate the premium bike market, holding over 90% of the market share in motorcycles with engine capacities greater than 250cc. The launch of the Royal Enfield Bullet 350 in a new avatar in September and the unveiling of the all-new Himalayan at EICMA 2023 for global audiences have further strengthened the brand’s position in the market.

In Q2 FY24, Eicher Motors reported its highest-ever quarterly revenue of ₹4,115 crore, reflecting a substantial 17% YoY increase. The company’s EBITDA also reached a record high of ₹1,087 crore, marking a 32% YoY growth. The net profit surged to ₹1,016 crore, showcasing a significant 54% improvement over Q2 FY23.

The quarter witnessed the sale of a record 229,496 Royal Enfield Motorcycles, indicating a remarkable 13% increase from the same period in FY 2022–23.

Analysts foresee a transformative effect on future consumption patterns with the expansion of the middle-class and high-income segments, leading to an incremental consumption of $4 trillion by 2030. This presents a significant opportunity for the premium bike market to thrive and grow further.