Motilal Oswal Maintains Neutral Rating on Eicher Motors After Q4, Cites Margin Pressures
मुख्य बातें
- •Motilal Oswal maintained a Neutral rating on Eicher Motors after Q4 results due to margin pressures from rising input costs and volume-focused growth strategy.
- •The brokerage firm sees fair valuation in the stock but warns that gross margins could remain weak in the near term.
- •Eicher Motors continues to prioritize volume growth, especially in the premium motorcycle segment through Royal Enfield.
- •Target price remains unchanged, reflecting cautious optimism without significant upside expected soon.
Motilal Oswal has maintained a Neutral rating on Eicher Motors following the release of its fourth-quarter results, citing concerns over margin sustainability amid rising input costs and a strategic focus on volume growth. The brokerage firm, however, acknowledged that the company’s fair valuation appears intact, providing a balanced outlook despite short-term headwinds.
Eicher Motors, a leading player in India’s commercial vehicle and motorcycle segments, reported its Q4 financial performance recently. Analysts at Motilal Oswal noted that while management remains committed to expanding market share through increased volumes, this approach is likely to keep gross margins under pressure. The surge in raw material and input costs has further intensified the squeeze on profitability, raising questions about near-term earnings resilience.
