The shares of the bullet-making company will increase by 35 percent! Advice to buy shares given by a brokerage house

Today on March 20, the shares of Eicher Motors have seen a tremendous surge. Shares of the company have reached the level of Rs 3938.60 with an increase of more than 5 percent. The rise in Eicher Motors shares comes after a rating upgrade by global brokerage house UBS. UBS has advised to buy shares of Eicher Motors. The brokerage house has upgraded the company's stock rating to Buy. Eicher Motors manufactures Royal Enfield and other commercial vehicles.

The brokerage house gave a target price of Rs 5000

Brokerage house UBS has upgraded the company's rating in view of its new launch and weak performance of competitors. UBS has given a target price of Rs 5000 for Eicher Motors shares. The company's shares could rise by around 35 percent from yesterday's closing price on March 19. According to the report, the brokerage house is bullish about the company's business prospects due to Royal Enfield's growth projections.

New launches will accelerate

Royal Enfield's upcoming 450cc platform launch will address competition and growth concerns, the brokerage house believes. According to UBS, domestic volumes of Eicher Motors' Royal Enfield could witness a CAGR growth of 10 percent between fiscal 2024 and 2026, and industry growth could be between 6 to 7 percent. According to UBS, other companies entered the market to challenge Eicher Motors' dominance, but failed to make an impact on consumers.

The company's shares rose more than 200 percent in 4 years

In the last 4 years, the shares of Eicher Motors have seen an increase of more than 200 percent. On April 3, 2020, the shares of the company were at the level of Rs 1266.70. Shares of Eicher Motors touched Rs 3938.60 on 20 March 2024. The company stock has a 52 week high of Rs 4201.70 and a 52 week low of company stock is Rs 2835.95.