Shares of Eicher Motors declined nearly 7% during intra-day trading on Tuesday, February 11, following the release of its Q3FY25 results and a downward revision of its target price by Goldman Sachs. Despite maintaining a Buy rating, the global brokerage firm lowered its target price from ₹6,000 to ₹5,900, citing a 12.5% upside potential. Goldman Sachs noted that while Eicher’s Q3 performance met expectations, the company faced higher marketing expenses and regulation-driven price hikes, prompting the brokerage to reduce its FY25-27 EPS estimates by 5.4%.

In Q3FY25, Eicher Motors net profit surged 18% to ₹1,170 crore, compared to ₹995.97 crore in the same period last year. Revenue from operations witnessed a 19% year-on-year (YoY) growth, reaching ₹4,888 crore, while EBITDA rose 10% YoY to ₹1,201 crore. The companys VE Commercial Vehicles (VECV) segment also demonstrated resilience, with revenue increasing 6% YoY to ₹5,801 crore and EBITDA growing 16% to ₹509 crore. Additionally, profit after tax for VECV jumped 44% to ₹301 crore, supported by its highest-ever quarterly sales volume of 21,012 vehicles, surpassing 20,706 units sold in the same period last year. Despite a sluggish commercial vehicle (CV) industry, Eicher successfully gained market share. Meanwhile, Royal Enfield, Eicher’s flagship motorcycle brand, continued its dominance in the mid-size motorcycle segment, achieving its highest-ever quarterly sales volume of 269,039 motorcycles, marking a 17% YoY growth from 229,214 units in Q3FY24. Govindarajan, CEO of Royal Enfield, attributed this success to strategic product launches and operational optimization, particularly during India’s festive season.

Following Goldman Sachs target price cut, Eicher Motors stock declined 6.8%, touching an intra-day low of ₹4,966.15. The stock is now trading 10% below its all-time high of ₹5,551.75, recorded on February 4, 2025, but remains 35% higher than its 52-week low of ₹3,675, seen in March 2024. Over the past year, Eicher Motors stock has risen 39%, though it has dropped 1% in February 2025 after an 8% rally in January. While analysts remain optimistic about Eicher’s long-term growth, concerns over rising costs and regulatory changes have impacted short-term sentiment. Investors are advised to consult financial experts before making any investment decisions.

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