Eicher Motors Reaches Target Price of Rs 7580: Prabhudas Lilladher Research Recommendation

Eicher Motors Posts Strong Q4FY26 Consol Numbers, Retains Growth Outlook

Eicher Motors, a leading manufacturer of motorcycles, has reported decent fourth quarter (Q4) fiscal year 2026 consolidated numbers that slightly exceed street estimates. The company's continued dominance in the middle-weight motorcycle segment has driven growth in the motorcycle industry. Eicher Motors' strategy of launching new products in the 250cc-750cc segment across the globe, premiumization, and brand building campaigns, along with multiple cost levers, has positioned it to navigate through geopolitical and supply chain issues.

Market Outlook

The research firm, Prabhudas Lilladher, estimates a compound annual growth rate (CAGR) of 12.6% for revenue, 13.4% for earnings before interest, taxes, depreciation, and amortization (EBITDA), and 14.9% for attributable profit after tax (APAT) over the fiscal years 2026-2028. The firm has retained an 'ACCUMULATE' rating with a target price (TP) of INR7,580, a decrease from the previous target price of INR7,700.

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Valuation

The research firm values the core business at a price-to-earnings (P/E) ratio of 30 times the fiscal year 2028 standalone earnings per share (EPS). The valued and expanded capital value (VECV) business is valued at an enterprise value-to-EBITDA (EV/EBITDA) ratio of 10 times fiscal year 2028 earnings.

Revenue and EBITDA CAGR Comparison

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Target Price and Rating