Nomura has upgraded Eicher Motors from Reduce to Neutral, with a revised target price of ₹4,391, suggesting a 4.5% downside from the current market price (CMP) of ₹4,598.80. Eicher’s Q2 margins were impacted by growth investments, but Nomura is optimistic about Royal Enfield’s shift in strategy toward volume growth, which may slow down market share loss. As a result, Nomura has raised its FY25/26 volume estimates for Royal Enfield by 3-5% while lowering margin estimates by 20-40 basis points for FY25-FY27.
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