Morgan Stanley has maintained its underweight rating on Eicher Motors, with a target price of ₹4,079 per share. The stock was trading at ₹5,463.50 at the time of the report, indicating the brokerage sees potential downside from current levels.
According to Morgan Stanley, the company’s EBITDA and margins were broadly in line with estimates. However, it noted that management remains focused on driving volumes over margins, which may limit profitability expansion in the near term.
The brokerage flagged that the stock appears to be pricing in both high growth and high margins, making it vulnerable to disappointments. It highlighted downside risks to consensus margin estimates, citing the possibility that current expectations may be overly optimistic.
Disclaimer: This article is based on Morgan Stanley’s stock research report. The views and target price mentioned are theirs. This does not constitute a recommendation to buy or sell any stock. Please consult a registered financial advisor before making any investment decisions.
