Share price of manufacturer of the Royal Enfield motorcycles Eicher Motors continued to rise for the third straight day, ahead of its board meeting scheduled on June 12, 2020, to consider its January-March earnings as well as a stock split, in a move to increase liquidity.
On Thursday, Eicher Motors share price touched an intraday high of Rs 16437.9, rising 9.81% against the last closing value of Rs 14,969 on BSE.
Stock price of Eicher Motors has climbed 17.6% in the last 3 days and 15.24% in one week. The stock has risen 12.15% in one month.
The stock price of Eicher Motors trades higher than its 5, 20 and 50 day moving averages but lower than 100 and 200-day moving averages.
Market capitalisation of the firm rose to Rs 41,797 crore.
The company board plans to consider FY20 results & sub-division or split of equity shares on June 12, 2020.
As per Reliance securities, while recent supports for the stock stand at 14,209 and 14,608, the near-term resistance lie around 15,223 and 15,479, with the pivot point at 14,864.
Meanwhile, Motilal Oswal said Eicher Motor was among the top stocks that registered an increase in holdings by DIIs and decrease in holdings by FIIs.
Kotak Institutional Equities in its earning report has given a buy call at a target price of Rs 14,967, with 30% upside to the fair value of Rs 19,500.
ICICI Securities also upgraded the auto stock from HOLD to BUY, at a target price of Rs 17,150 and said, "We feel, Eicher Motors presents an attractive risk-reward opportunity post steep price correction and with its undiminished brand loyalty, which will act as a catalyst for an eventual recovery once pandemic effects subside."
"The above 250 cc motorcycle category continues to be a near monopoly, with Eicher Motors cornering approx 96% market share domestically as of FY20," the brokerage added.