Eicher Motors shares gained more than 5% in early trade on August 8, a day after the automaker reported its results for the April to June 2024 quarter. Following the quarterly results, brokerages seem divided on the auto company even as their target prices for the stock are similar.

Jefferies maintained its buy call on the Eicher Motors shares but cut the target to ₹5,500 from ₹6,000 per share.

It cited the recent weakness in Royal Enfield volumes as a cause of concern, even as it believes the toughest phase of competition is behind the company. The firm should be a key beneficiary of two-wheeler premiumisation.

The analyst has also cut the FY25-27 earnings per share estimate (EPS) by 2-4%.

Meanwhile, Goldman Sachs said that the automaker has reported a Q1 beat on its projections. The brokerage has raised the 12-month target price to ₹5,600 as it sees a potential upside of 22%. The new G450 has already done 6,500 units of dispatches since its July 17 launch, the analyst noted.

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Investec, on the other hand, has maintained its sell rating on Eicher Motors shares as it believes valuations appear rich at 26 times the FY26 EPS estimate. It added that volume growth is expected to moderate.

The brokerage commentary comes a day after the company reported its Q1 results.

Its consolidated profit after tax (PAT) increased 20% year on year to ₹1,101 crore in the first quarter ended June 2024, aided by higher sales. The company reported a profit after tax (PAT) of ₹918 crore in the June quarter of the last fiscal year.

Revenue from operations rose to ₹4,393 crore in the latest June quarter as compared to ₹3,986 crore in the year-ago period, Eicher Motors said in a regulatory filing.

The company said Royal Enfield, its two-wheeler division, saw sales of 2,27,736 motorcycles in the first quarter as compared to 2,25,368 units in the June quarter of FY24.

Volvo Eicher Commercial Vehicle (VECV) reported a revenue of ₹5,070 crore for the quarter, up 2% as compared to ₹4,980 crore in the year-ago period. PAT stood at ₹319 crore as against ₹181 crore last year, Eicher Motors said.