NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motial Oswal Report
Eicher Motors Ltd.’s Q3 FY26 consolidated net profit at Rs 1,430 crore was largely in line with the brokerage estimate. While Royal Enfield performance was better than expected, VE Commercial Vehicles performance was below expectations.
The robust domestic volume growth for RE in FY26 so far has largely been a function of GST rate cut benefits. However, demand seems to have now normalised after an initial surge in pent-up demand. Further, given that management would continue to focus on “growth over profitability,” it would mean that margin upside is likely to be capped from hereon.
The brokerage factors in RE to post a CAGR of 16%/16%/14% in revenue/ Ebitda/PAT over FY25-28E. Given the expected slower earnings growth, Motilla Oswal sees no reason for the stock to trade at premium valuations.
Hence reiterate Sell rating with a target price of Rs 6,313 and values RE at 26 times Dec’27E EPS and VECV at 11x EV Ebitda.
Click on the attachment to read the full report:
Motilal Oswal Eicher Motors Q3fy26 Results Review.pdf
ALSO READ:Eicher Motors Q3 Result Review: Most Brokerages Hike Target Price — Here’s Why
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence,
Continuous LIVE TV,
Sharp Market Insights,
Practical Personal Finance Advice and
Latest Stories — On NDTV Profit.
