Eicher Motors share price target: What are Morgan Stanley, Nomura saying about Royal Enfield maker?

Shares of Eicher Motors remained little changed on Thursday after the maker of popular motorcycles under the brand name Royal Enfield reported strong earnings for the first quarter of FY27, with brokerages remaining mixed in their views on what lies ahead.

Eicher Motors on Wednesday reported a more than 21% year-on-year (YoY) rise in consolidated net profit to Rs 1,462 crore for the April-June quarter of the ongoing financial year 2027, from Rs 1,205 crore reported in the year-ago period. The firm's revenue from operations meanwhile jumped around 32.55% YoY to Rs 6,632 crore during the quarter under review.

The two-wheeler and truck maker's EBITDA grew 32% YoY to its highest-ever at Rs 1,591 crore, as compared to Rs 1,203 crore reported in the same quarter of the previous financial year. "Building on a record-setting performance in FY26, we have sustained our strong momentum into the new financial year, with Royal Enfield recording its highest-ever quarterly sales and VECV recording its highest-ever Q1 sales," said B. Govindarajan, Managing Director of Eicher Motors and Chief Executive Officer of Royal Enfield.


He added that in order to support the company's growth over the long-term, it announced plans for a new greenfield manufacturing facility in Tada, Andhra Pradesh, to expand capacity beyond the existing facilities in Tamil Nadu. "With a robust product launch calendar and diverse brand initiatives planned for the rest of the year, we are optimistic about maintaining our growth trajectory in the dynamic global environment," he further said.

Also read | Eicher Motors Q1 Results: Profit jumps 21% to Rs 1,462 crore

Nomura on Eicher Motors share price

Nomura raised its target price for the shares of Eicher Motors to Rs 8,437 apiece from Rs 7,878 apiece, while maintaining its 'Neutral' call. The latest target price implies an upside potential of 8.5% from the stock's previous closing price.

The international brokerage noted that the company's Q1 average selling prices and lower other expenses led to earnings beating estimates, with the new 250 cc bike launch being one of the key upside drivers. However, competition and ICE ban remain key risks.

Morgan Stanley on Eicher Motors share price

Morgan Stanley maintained its 'Equal Weight' call on the shares of Eicher Motors with a target price of Rs 7,763 apiece. The international brokerage highlighted that the firm's Q1 EBITDA growth of 32% YoY came in ahead of estimates, ET Now reported.

The target price implies a downside potential of 0.2%.

Nuvama on Eicher Motors share price

Nuvama maintained its 'Buy' rating on the shares of Eicher Motors, saying that the company delivered a robust set of Q1 earnings and is now revving up for the next leg of growth. It raised its target price to Rs 8,900 apiece from Rs 8,100 apiece, with the latest estimate implying an upside potential of over 14%.

Going forward, Nomura expects a 16% volume CAGR over FY26-28 led by 17% growth in domestic and 11% growth in export segment on strong demand for key models and new products such as Himalayan 750cc, Flying Flea S6 EV and a new 250cc motorcycle. Led by higher revenue assumption, it raised FY27 and FY28 EBITDA estimates by 2-4%.

Eicher Motors share price

Eicher Motors shares recorded a marginal decline to close at Rs 7,779 apiece on Wednesday, before the company announced its earnings. The stock gained nearly 1% in a week, 10% in a month and 6% in 2026 so far.

In the longer term, Eicher Motors shares have jumped 42% in one year, 132% in three years and 208% in five years.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)