Volume pickup to fuel Eicher's ride ahead

Stock up 30% over the year, outpacing Sensex's 8% rise

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Shares of Eicher Motors, a twowheeler and commercial vehicle major, slipped 6.7 per cent in trade on Tuesday due to lower profitability and profit booking. The company posted weakerthan-expected earnings before interest, tax, depreciation, and amortisation (Ebitda) margin, which contracted by 190 basis points (bps) to 24.2 per cent in the third quarter (Q3) of 2024-25 (FY25), from 26.1 per cent in Q3 of 2023-24 (FY24).

The stock had also hit an all-time high of ₹5,551.75 on February 5, prompting investors to book profits.

As a result, Eicher Motors' share price dropped as much as 7.05 per cent, hitting an intraday low of 4,953.35 per share. The stock, meanwhile, settled 6.56 per cent lower at ₹4,980. In comparison, the BSE Sensex closed 1.32 per cent lower at 76,293.6.

However, over the past year, Eicher Motors has outperformed the market, surging 30 per cent compared to an 8 per cent rise in the Sensex.

Analysts at Motilal Oswal highlighted that while overall results were positive, the operating performance fell short of expectations.