Eicher Motors Down 7%; Goldman Sachs Reduces Target Price

Shares of Eicher Motors were down by 7% on February 11 after Goldman Sachs reduced the target price on the stock.

Maintaining a ‘buy’ rating on Eicher Motors, the brokerage revised its target price to ₹5,900 from ₹6,000, thus implying an upside of 12.5% from previous day’s close. The Q3 numbers were in-line with expectations, wherein deeper focus on product and marketing strategies steered the growth. However, Goldman Sachs cut its EPS estimates for FY25-27 by 5.4% highlighting higher marketing expenses.

Q3 Results: Eicher Motors

The company reported a surge in its net profit by 18% at ₹1,170 crore for the third quarter, compared to ₹995.97 crore in the year-ago period. Revenue from operations surged by 19% to ₹4,888 crore in Q3 FY25, compared to ₹4,116 crore in the corresponding quarter of the previous year. EBITDA was up by 10% YoY at ₹1,201 crore in the December quarter.

VE Commercial Vehicles (VECV) segment grew by 6% YoY by posting a revenue of ₹5,801 crore, while EBITDA soared by 16% to ₹509 crore. Profit after tax climbed by 44% to ₹301 crore. Interestingly, VECV clocked its highest-ever quarterly sales volume touching 21,012 vehicles in Q3 FY25, which in turn surpassed 20,706 units sold in the year-ago period.

Siddhartha Lal, Managing Director of Eicher Motors said, “With a strong and diverse product portfolio, we are well on track to meet the evolving needs of riders across the world. Even as the commercial vehicle industry remained sluggish, VE Commercial Vehicles grew volumes quarter-on-quarter with strengthened market share in all segments. With this momentum across both motorcycle and commercial vehicle businesses, we are confident of continued success in the future as well.”

How did the stock perform?

Following Eicher Motors’ target price revision, its shares declined by 6.8% to its intra-day low of ₹4,966.15. The stock is down 10% below its all-time high of ₹5,551.75, as reported on February 4. However, the share price is 35% up from its 52-week low of ₹3,675.00, as reported in March 2024.

During the past year, the stock surged by 39%. As of February 2025, shares of Eicher Motors are down 1%, following an 8% increase in January.