Eicher Motors shares turn positive for 2026 after bulls see stock testing ₹9,000 levels

Shares of Royal Enfield-maker Eicher Motors Ltd. gained as much as 6% on Monday, May 25, in response to the company's March quarter results and with analysts expecting the stock to test levels of over ₹9,000.

Over 70% of the analysts who have coverage on Eicher Motors have a "buy" rating on the stock.

For the March quarter, Eicher Motors continued to report a double-digit growth in its topline, while margins remained around the mark of 25%, aided by price hikes taken by the company.

Here's a look at what various brokerages had to say:

CLSA

The brokerage has an outperform rating with a price target of ₹7,651.

CLSA noted that Eicher’s consolidated EBITDA margin of 24.9% was in line with expectations, even as Royal Enfield navigated approximately 90 bps of commodity inflation in Q4, with further pressure expected in Q1 FY27.

The firm expects Royal Enfield to outperform industry volume growth, projecting a 12% volume CAGR for financial year 2026-2028, bolstered by strong demand in the 350cc+ segment.

Goldman Sachs

Goldman Sachs highlighted that while production issues related to labor and supply shortages impacted May volumes, these bottlenecks have now been resolved. Inventory levels remain exceptionally lean at 7–8 days.

The brokerage noted that the April price hikes should offset roughly 50% of the anticipated 300–350 bps commodity impact, with further offsets in the pipeline.

Goldman Sachs has a "buy" rating on Eicher Motors with a price target of ₹8,400

HSBC

The brokerage has a "buy" rating on the stock with a price target of ₹8,200.

A key highlight for the brokerage is the announcement of a new greenfield expansion project, which will scale capacity beyond the 2 million units currently targeted by the ongoing brownfield project at Cheyyar.

HSBC maintains that Royal Enfield’s superior growth trajectory justifies its premium valuation.

Citi

The brokerage sees the stock at ₹8,350, which is among the highest targets on the street for the stock.

Citi pointed to significant capacity scaling: with current capacity at 1.46 million units, the company is aiming for 2 million units by Q2 FY28 via brownfield expansion, followed by a major ₹2,500 crore greenfield facility. Additionally, the new financing JV with Volvo is expected to further support VECV volume growth.

Elara Capital has among the highest targets on the street for the stock at ₹9,001.

41 analysts have coverage on Eicher Motors, of which 29 of them have a "buy" rating, eight have a "hold" rating, while four have a "sell" recommendation on the stock.

Shares of Eicher Motors are the top gainers on the Nifty 50 index on Monday, trading 5.5% higher at ₹7,362. With this move, the stock has also turned positive on a year-to-date basis.