Eicher Motors shares: Brokerages see up to 29% upside; Royal Enfield demand stays strong despite export uncertainty

Select brokerages maintained their constructive stance on shares of Eicher Motors Ltd, parent of bikemaker Royal Enfield, following its March 2026 quarter (Q4 FY26) earnings. Nuvama Institutional Equities has retained its 'Buy' call on the stock with an unchanged target price of Rs 8,100 apiece.

"Revenue grew 16 per cent YoY to Rs 6,080 crore, in line with estimate. Royal Enfield (RE) volumes grew 12 per cent to 317,561 units and realisation inched up 3 per cent to Rs 191,462/unit. EBITDA surged 20 per cent to Rs 1,510 crore, in line with estimate. EBITDA margin expanded 90bp to 24.9 per cent. Other income fell 7 per cent to Rs 350 crore. Share of profits from associate (VECV) increased 30 per cent to Rs 320 crore. Overall, adjusted PAT grew 12 per cent to Rs 1,520 crore, in line with estimate," it stated.

"Going forward, we expect the momentum to persist at 15 per cent volume CAGR over FY26–28E led by 16 per cent/11 per cent growth in domestic/export segments, in turn led by strong demand for key models and new products such as Bullet 650cc, Himalayan 750cc, Flying Flea S6 EV and a new 250cc motorcycle," Nuvama added.

"We are building in revenue/EBITDA CAGR of 18 per cent/19 per cent over FY26–28E, with ROIC at ~55 per cent. Retain 'BUY' with an unchanged TP of Rs 8,100/share based on FY28E PE of 30x/25x for 2W/CV segments and value of investments at Rs 22/share. The stock is trading at FY27E/28E PE of 29x/25x," the brokerage further stated.

Elara Capital has also reiterated a 'Buy' while trimming its target price to Rs 9,001 from Rs 9,300 earlier. Even after the reduction, the suggested target implied a potential upside of around 29 per cent from the brokerage's assessed price of Rs 6,982.

Although, it expects FY27 margin to face pressure before improving in FY28. "Hence, we lower our earnings by 6 per cent for FY27E and 5 per cent for FY28E. We retain Buy with a lower TP of Rs 9,001 on 33x June 28E P/E for RE (Royal Enfield) and 11x EV/ EBITDA for VECV. EIM (Eicher) remains our top pick, as we see market share gains in FY27 as well, due to sustained demand in the premium segment and lean inventory situation, capacity addition, which lends ample support to push wholesale amid sustained retail growth," Elara said.

Choice Institutional Equities has kept an 'Add' call after a resilient quarter. "We largely maintain our FY27/FY28E EPS estimate. We value the stock on P/E multiple for FY28E EPS, on the basis of relative comparison amongst the peer group across financial and operating metrics. We maintain our target price of Rs 7,650 along with an 'ADD' rating on the stock. We believe sustained broad-based growth across Royal Enfield and VECV, will be supported by capacity expansion, improving operating leverage and a strong product pipeline," it stated.

However, Motilal Oswal Financial Services Ltd (MOFSL) has maintained its 'Neutral' rating on export uncertainty. "Overall, we expect EIM to post a 14 per cent earnings CAGR. At 31.6x/27.6x FY27E/FY28E, the stock appears fairly valued. Reiterate Neutral with a TP of Rs 6,912. We value RE at 28x FY28E EPS and VECV at 12x EV/EBITDA," it said.

JM Financial reiterated its 'Reduce' call as it highlighted that the company management remains cautiously optimistic on exports amid global macro uncertainties. Though, it slightly raised its target price.

"We marginally revise our EPS estimates and maintain REDUCE with a revised TP of Rs 7,240 (vs. Rs 7,150 earlier; SOTP-based valuation with RE at 29x PE and VECV at 13x EV/EBITDA, unchanged)," JM said.