Morgan Stanley has maintained its Underweight rating on Eicher Motors, setting a target price of ₹3,655, which implies a 20.5% downside from the current market price (CMP) of ₹4,598.80. The company posted weak Q2 earnings, with EBITDA coming in 8% below Morgan Stanley’s estimates. Eicher’s strategy has shifted towards prioritizing growth over margins, which Morgan Stanley views as a sensible approach, though the current valuation keeps them cautious. Despite an improved product mix, EBITDA margin declined on a year-over-year basis.
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