Eicher Motors: What CLSA, Macquarie, Citi & Jefferies say amid 7% rally
Eicher Motors share price: Jefferies said it raised its target price to Rs 8,800 from Rs 8,650 earlier after increasing its FY27-28 earnings per share estimates by 3-4 per cent.
- Feb 11, 2026,
- Updated Feb 11, 2026 12:43 PM IST
Eicher Motors Ltd jumped 7 per cent in Wednesday’s trade as its December quarter results exceeded Street expectations on margins, leading several foreign brokerages to raise their target prices on the stock.
CLSA said Eicher Motors’ Q3 standalone Ebitda margin came in at 26.6 per cent, nearly 200 basis points above its estimate. The brokerage attributed the outperformance to a richer product mix, value engineering initiatives and the lag effect of price hikes in the first half of FY26.
“We believe EIM is well-placed in terms of near-term growth driven by strong momentum in the domestic market, especially post-GST rate cut amidst the premiumisation trend and refresh launches,” CLSA said.
The brokerage maintained its ‘Outperform’ rating and raised its target price to Rs 8,066 from Rs 7,836 earlier.
Citi maintained its ‘Buy’ rating on Eicher Motors, citing encouraging trends in volumes and margins. The brokerage said it tweaked up its Ebitda estimates on the back of better average selling prices and margins, although the increase in earnings was partly offset by higher depreciation due to large capital expenditure. Citi raised its SOTP-based target price to Rs 8,300 from Rs 8,200 earlier.
Jefferies said it raised its target price to Rs 8,800 from Rs 8,650 earlier after increasing its FY27-28 earnings per share estimates by 3-4 per cent, driven by slightly higher Royal Enfield margins.
“While EIM’s 31 times FY27E PE appears rich, we believe premium multiples are justified for strong growth and improved long-term market share outlook,” Jefferies said.
The brokerage retained its ‘Buy’ rating, valuing Royal Enfield at 35 times September 2027 estimated PE and VECV at 6 times September 2027 estimated price to book value.
Macquarie said Eicher Motors is a beneficiary of the GST rate reduction and expected the stock to perform well in the near term given its solid earnings delivery.
“However, we believe upside potential is capped with 13 per cent FY27E domestic volume growth and current stock multiple (core basis) at 31 times FY27E EPS,” Macquarie said.
The brokerage suggested a target price of Rs 7,479 on the stock.
Eicher Motors Ltd jumped 7 per cent in Wednesday’s trade as its December quarter results exceeded Street expectations on margins, leading several foreign brokerages to raise their target prices on the stock.
CLSA said Eicher Motors’ Q3 standalone Ebitda margin came in at 26.6 per cent, nearly 200 basis points above its estimate. The brokerage attributed the outperformance to a richer product mix, value engineering initiatives and the lag effect of price hikes in the first half of FY26.
“We believe EIM is well-placed in terms of near-term growth driven by strong momentum in the domestic market, especially post-GST rate cut amidst the premiumisation trend and refresh launches,” CLSA said.
The brokerage maintained its ‘Outperform’ rating and raised its target price to Rs 8,066 from Rs 7,836 earlier.
Citi maintained its ‘Buy’ rating on Eicher Motors, citing encouraging trends in volumes and margins. The brokerage said it tweaked up its Ebitda estimates on the back of better average selling prices and margins, although the increase in earnings was partly offset by higher depreciation due to large capital expenditure. Citi raised its SOTP-based target price to Rs 8,300 from Rs 8,200 earlier.
Jefferies said it raised its target price to Rs 8,800 from Rs 8,650 earlier after increasing its FY27-28 earnings per share estimates by 3-4 per cent, driven by slightly higher Royal Enfield margins.
“While EIM’s 31 times FY27E PE appears rich, we believe premium multiples are justified for strong growth and improved long-term market share outlook,” Jefferies said.
The brokerage retained its ‘Buy’ rating, valuing Royal Enfield at 35 times September 2027 estimated PE and VECV at 6 times September 2027 estimated price to book value.
Macquarie said Eicher Motors is a beneficiary of the GST rate reduction and expected the stock to perform well in the near term given its solid earnings delivery.
“However, we believe upside potential is capped with 13 per cent FY27E domestic volume growth and current stock multiple (core basis) at 31 times FY27E EPS,” Macquarie said.
The brokerage suggested a target price of Rs 7,479 on the stock.