Shares of Eicher Motors fell virtually seven per cent in intraday commerce on February 11 after the corporate reported its December quarter (Q3FY25) outcomes. The inventory slipped to an intraday low of Rs 4,966.15 as world brokerage agency Goldman Sachs lowered its goal value, citing rising advertising prices as a priority.
Goldman Sachs revises goal value downward
Goldman Sachs maintained a ‘Purchase’ score on Eicher Motors however lowered its goal value to Rs 5,900 from Rs 6,000, implying a 12.5 per cent upside from the earlier shut. The brokerage famous that whereas Q3 earnings have been in step with expectations, rising advertising bills led to a 5 per cent lower in earnings per share (EPS) estimates for FY25-27. Moreover, regulation-driven value hikes have been extra important for Eicher than for different trade gamers.
Q3 efficiency sees revenue and income surge
Eicher Motors reported an 18 per cent improve in web revenue to Rs 1,170 crore in Q3FY25, in comparison with Rs 995.97 crore in the identical interval final 12 months. Income from operations jumped 19 per cent to Rs 4,888 crore from Rs 4,116 crore in Q3FY24. In the meantime, earnings earlier than curiosity, tax, depreciation, and amortisation (EBITDA) grew 10 per cent year-on-year to Rs 1,201 crore.
VE Business Automobiles posts file gross sales
The corporate’s industrial automobile arm, VE Business Automobiles (VECV), recorded a six per cent year-on-year rise in income to Rs 5,801 crore, whereas its EBITDA grew 16 per cent to Rs 509 crore. Revenue after tax for the section jumped 44 per cent to Rs 301 crore. The corporate achieved its highest-ever quarterly gross sales quantity, promoting 21,012 automobiles, up from 20,706 items in Q3FY24.
Royal Enfield registers file gross sales
Royal Enfield, Eicher’s flagship bike model, continued its dominance within the mid-size bike section, posting its highest-ever quarterly gross sales of two,69,039 bikes, a 17 per cent improve from the two,29,214 items bought in Q3FY24. CEO Govindarajan attributed the expansion to strategic launches and operational optimisations.
Inventory efficiency and outlook
Following the brokerage revision, Eicher Motors’ inventory is now over 10 per cent beneath its all-time excessive of Rs 5,551.75, recorded on February 4, 2025. Regardless of the latest drop, the inventory stays up over 35 per cent from its 52-week low of Rs 3,675 in March 2024. The corporate’s long-term outlook stays constructive, with analysts anticipating sustained demand to help future development.
