Amid sharp downtick seen in the market, index heavyweight Eicher Motors share price traded as the top loser on BSE, NSE, declining over 7% after the automaker posted a weak set of Q1 earnings. The stock has fallen almost 8.93% in the last 2 days. The automaker reported a consolidated net loss of Rs 55 crore in the June quarter against a net profit of Rs 452 crore in the year-ago period.
Revenue from operations fell 66% YoY at Rs 818 crore against 2,382 crore registered in the year-ago period.
Following the result update by the automobile manufacturing company, shares of Eicher Motors touched an intraday low of Rs 20,083.9, falling 7.32% as compared to its earlier close of Rs 21,671 on BSE. It has also touched an intraday high of Rs 21,740, after opening at Rs 21,640.
The stock price of Eicher Motors has fallen over 10% since the beginning of the year. Eicher Motors share trades higher than 50, 100 and 200-day but lower than 5 and 20-day moving averages.
Market capitalisation of the large-cap firm stood at Rs 54,965.92 crore as of today's session. Meanwhile, the Nifty Auto index was trading 0.98 per cent down at 7802.3.
Motilal Oswal has a 'BUY' rating on the auto stock, with a target price of Rs 24,750. The brokerage believes new products would help expand the addressable markets and drive the next phase of growth for RE. Volume recovery, led by new product launches, would drive margin recovery in FY22.
On the contrary, brokerage house CLSA has downgraded the stock to 'sell' from 'underperform' and reduced target to Rs 19,000 from Rs 19,500 earlier. "Unlike peers, Eicher Motors has not been able to fully pass on BS-VI related costs," said CLSA and added that company's operating metrics continue to lag peers. It added that the Eicher Motors' Q1 miss was largely driven by a lower gross margin.
Morgan Stanley said Eicher Motors' Q1 EBITDA is below estimates due to the incentive scheme offered to restart retail sales. The brokerage stays 'overweight' on the stock, with a target price of Rs 21,072. MS said bookings holding were at pre-COVID levels and added that the order book at 45,000 and productions are the key challenges.