Eicher Motors on the 'high'way

Eicher Motors continues to glide along the highway. After having a hit a new high on Friday, today too, the stock is strongly up, hitting a new 52-week high at Rs.5016.20, with an over two times jump in volumes.

The stock has been up since the time many brokerage houses, FIIs as well as domestic have put out a “buy” on the stock. The company announced its Q2FY14 numbers around 15 days ago but post analysis of the data and based on the robust monsoon, going ahead, most brokerages expect the company to have a very good year ahead. Consistently good sales for its Royal Enfield has reiterated this faith, wherein it sold 61% (YoY) more Enfield’s than what it did a year ago, and that too at a time when others are struggling. In fact demand is so good that there is a 3-4 month waiting period and this is despite the company having expanded its capacities. Its newly launched motorcycle, Continental GT too has received a good response. Thus all these factors are being factored in and the stock is on a high.