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HomeSTOCKEicher Motors shares surge following Jefferies' bullish outlook and upgraded goal worth...

Eicher Motors shares surge following Jefferies’ bullish outlook and upgraded goal worth By

© Reuters

Shares of Eicher Motors, the guardian firm of Royal Enfield, surged nearly 4% on Tuesday, making it the highest performer on the NSE Nifty 50. The inventory was buying and selling at Rs 3,500 as of noon, marking a 3.35% enhance from its closing worth on Monday.

This upward pattern adopted international brokerage agency Jefferies expressing a bullish outlook on Eicher Motors’ prospects. The optimism stemmed from lowered competitors issues, rising demand for two-wheelers, Eicher Motors’ premium choices aligning with Indian shoppers’ altering tastes, and progress within the firm’s exports.

Jefferies additional upgraded its goal worth for Eicher Motors to Rs 4,150 from the earlier Rs 4,000. This revised goal worth suggests a possible 22.5% rise within the inventory’s worth from its closing worth on Monday.

The brokerage agency additionally underscored Royal Enfield’s robust place to capitalize on the potential surge in demand for two-wheelers in India. The motorbike model owned by Eicher Motors is understood for its distinctive choices and strong model fame. As Indian shoppers more and more search premium bikes, Royal Enfield stands to realize.

Relating to valuation, Jefferies adjusted its evaluation of Royal Enfield to 25 occasions its price-to-earnings ratio (PE), up from the earlier estimate of 24 occasions PE. The business automobile enterprise is valued at 5.5 occasions its price-to-book ratio (PB) for FY25.

It is vital to notice that these views and suggestions are these of Jefferies and potential buyers are suggested to seek the advice of with a professional dealer or monetary advisor earlier than making any buying and selling or funding choices.

This text was generated with the assist of AI and reviewed by an editor. For extra info see our T&C.

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