Eicher Motors hits a new high

Eicher Motors had closed at Rs.25,837.45 on Friday and today morning, it opened at a new high at Rs.26,999.

The stock is enthused with the company’s performance for Q4FY17. It posted a very good 34% (YoY) rise in consolidated net profit at Rs.459 crore on a 23% increase in total income at Rs.2132 crore.

EBITDA came in very healthy at Rs.585 crore, up 31% while margins showed a surge from 29.2% to 31%.

The market is also happy with the unconfirmed news that the company is very close to acquiring the iconic high-performance motorcycle brand, Ducati, which is owned by the Volkswagen group. But this will not come cheap – valuation for Ducati is currently pegged at around Rs.10,500 crore.

Ducati will be a good addition to Eicher’s basket as Ducati’s current portfolio has motorcycles mainly with engine power between 800cc and 1,200cc- something which Eicher does not have at all.