Eicher Motors at new high

Eicher Motors hit a new 52-week high today at Rs.32,856; the stock has come off the high but remains firmly in the green.

The stock price is up on a strong buzz that the company was very close to making a bid to acquire iconic Italian superbikes Ducati for $1.8 billion-$2 billion. 

If this does happen, the boost that it will get for its brand equity and earnings would be worth the price as Ducati is a world renowned name and would be a jewel in Eicher’s crown.

There is no confirmation about this from Eicher but the market is celebrating as though it has already won the bid.