Strong Momentum Drives Stock to New Heights
On 24 Nov 2025, Eicher Motors recorded its highest price in the past year at Rs.7268, marking a notable milestone for the company. This peak comes after a six-day consecutive gain period during which the stock delivered a cumulative return of 8.57%. The stock’s performance today outpaced the broader automobile sector by 0.95%, signalling a distinct upward trajectory relative to its peers.
The stock is currently trading above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates a sustained bullish trend and reflects strong investor confidence in the stock’s near-term price action.
Market Context and Sector Performance
The broader market environment has also been supportive. The Sensex opened 88.12 points higher and is trading at 85,409.82, representing a 0.21% gain. The index is approaching its own 52-week high, currently just 0.46% shy of the peak level of 85,801.70. The Sensex has experienced a three-week consecutive rise, accumulating a 2.64% gain over this period, with mega-cap stocks leading the advance.
Within this context, Eicher Motors’ outperformance of the sector and its own strong price momentum highlight the company’s prominent position in the automobile industry.
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Long-Term Performance and Financial Metrics
Over the past year, Eicher Motors has recorded a total return of 45.71%, significantly outpacing the Sensex’s 7.95% return during the same period. The stock’s 52-week low was Rs.4644.1, indicating a substantial appreciation in value over the last twelve months.
Financially, the company demonstrates strong fundamentals. Its average Return on Equity (ROE) stands at 20.03%, reflecting efficient utilisation of shareholder capital. Net sales have grown at an annual rate of 23.26%, while operating profit has expanded at 32.11% annually, underscoring healthy growth in core business operations.
Eicher Motors maintains a low average debt-to-equity ratio of zero, indicating a conservative capital structure with minimal reliance on debt financing. This financial prudence supports the company’s stability and capacity for sustained growth.
Recent Financial Highlights
The company’s latest results for the half-year ending September 2025 reveal a Return on Capital Employed (ROCE) of 29.14%, one of the highest in recent periods. Dividend per share (DPS) for the year reached Rs.70.00, with a dividend payout ratio of 44.85%, reflecting a balanced approach to rewarding shareholders while retaining earnings for growth.
Institutional investors hold 41.7% of the company’s shares, indicating significant participation by entities with extensive analytical resources and a focus on fundamentals.
Sector Position and Market Capitalisation
With a market capitalisation of Rs.1,95,685 crore, Eicher Motors ranks as the second-largest company in the automobile sector, trailing only Bajaj Auto. The company accounts for 25.25% of the sector’s total market value, highlighting its substantial influence within the industry.
Annual sales of Rs.21,427.66 crore represent 12.35% of the automobile sector’s total sales, further emphasising Eicher Motors’ significant market presence.
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Valuation and Risk Considerations
Despite its strong performance, Eicher Motors carries a relatively high valuation. The company’s Price to Book Value ratio stands at 8.9, which is considered expensive compared to typical market levels. The Price/Earnings to Growth (PEG) ratio is 2, reflecting the relationship between the stock’s price, earnings growth, and valuation.
Profit growth over the past year was recorded at 19.7%, which, while positive, is more moderate compared to the stock’s price appreciation. This divergence suggests that the market has priced in expectations of continued growth and strong fundamentals.
Investors should note these valuation metrics when analysing the stock’s current price levels relative to its financial performance.
Summary of Eicher Motors’ Market Achievement
Eicher Motors’ attainment of a new 52-week high at Rs.7268 is a clear indicator of the company’s robust market momentum and strong positioning within the automobile sector. Supported by solid financial metrics, consistent returns, and a favourable market environment, the stock’s recent performance reflects a combination of operational strength and positive investor sentiment.
The stock’s trading above all major moving averages and its outperformance relative to the sector and broader market indices further underscore the significance of this milestone.
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