Eicher Motors rides up 10% in a weak market: A fantastic buy, says expert

NEW DELHI: Shares of Eicher Motors surged as much as 10.4 per cent in a bearish market on Thursday, a day after the company reported its results for the fourth quarter ended December 31, 2013.

Eicher Motors yesterday posted a 32.35 per cent rise in consolidated net profit at Rs 96.25 crore for the quarter.

The company, which follows January-December fiscal, had posted a net profit of Rs 72.72 crore during the same period of previous fiscal year.

At 1:40 pm, the stock was trading at Rs 4,810.10, up 8.82%, on the Bombay Stock Exchange. After opening at Rs 4,599.85, the stock hit a high of Rs 4,884 and a low of Rs 4,525.40 in today's trade.

"It is a fantastic stock to buy, and it is a must in one's portfolio. Every time we seek about two-wheelers and commercial vehicles, we do not speak much of Eicher Motors ...Continental GT has been a far better success than what one would have anticipated in the two- wheeler space," says Gaurang Shah, VP, Geojit BNP Paribas Financial Services.

Consolidated net sales of the company rose to Rs 1,663.96 crore for the fourth quarter, compared to Rs 1,630.49 crore during the same period of previous fiscal, Eicher Motors said in a filing to the BSE.

The company follows January-December financial year. The company's board, which met yesterday, recommended 300 per cent dividend on the equity share capital (Rs 30 per share), subject to the approval of shareholders.

For the year ended December 31, 2013, the company posted consolidated net profit of Rs 393.94 crore, compared to Rs 324.26 crore during the previous fiscal.

Consolidated net sales of the company for the year ended December 31, 2013, rose to Rs 6,685.75 crore, as against Rs 6,329.94 crore in the previous fiscal.

Eicher Motors last November expanded its motorcycle range in India with the launch of Continental GT.