Eicher Motors is showing a solid performance outlook, with its share price having increased significantly in 2024. As of September 2024, the stock price is around ₹4895, reflecting an 18% rise since the start of the year. Analysts expect the stock to continue its upward trend, with potential targets ranging from ₹4920 to ₹5026 by the end of the year. Looking further ahead, Eicher Motors is projected to grow even more in 2025, with optimistic price targets between ₹6085 and ₹6308, representing a 24-29% upside. This positive outlook is driven by strong earnings, robust demand for its commercial vehicles and motorcycles, and expanding market share. Overall, the stock is considered a strong performer with significant growth potential in the medium term.

• The mainstream of revenue for the Auto Sector is their sales, Eicher Motors has reported decent sales growth of 14.30 %, and in the latest quarter sales were Rs 4,231.28 Cr. To judge whether the company’s inventory is being sold or not and whether the sales picture is true, the inventory turnover ratio plays a major role, which is 16.35 times for Eicher Motors. It is managing its inventory poorly.
   
• Eicher Motors reported Profit growth of 42.97 % over the year, where the latest year’s profit is Rs 3,749.42 Cr compared to the previous year of Rs 2,622.59 Cr. The new permits by governments and increasing demand will lead to an increase in profits in the coming year.
   
• The operating profit of Eicher Motors in the latest quarter is Rs 1,178.59 Cr. It helps in measuring the company’s operating performance which is used to make financing decisions.
   
• Eicher Motors has a healthy ROE of 26.36 %. The ROE is an important financial parameter because Auto companies work with high equity investments. Also, they have to take huge debt to incur the research and manufacturing work so their Debt-to-Equity ratio should be evaluated. Eicher Motors has a low Debt to Equity ratio of 0.01.
   
• Eicher Motors pays a dividend of 51 Rs per share. It tells us that a company likes to share profits with its shareholders. The dividend yield is low at 1.03 %.
   
• The share of the promoter in Eicher Motors is low at 49.11%, where the pledging is 0 %.
   
• What the market is willing to pay for the company for its earnings can be determined by PE multiple. The current PE of Eicher Motors is 34.55 compared to the 5-year average PE of 34.96.

The stock was in consolidation in a range between 4855 and 4920 in the last few days. Today stock gave a breakout above that range and hence recommended ATM Call Option.