Eicher Motors Ltd Hits New 52-Week High of Rs.7610 on 9 Jan 2026

Jan 09 2026 09:50 AM IST

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Eicher Motors Ltd has reached a new 52-week high of Rs.7610 today, reflecting sustained momentum and robust performance in the automobile sector. This milestone underscores the stock’s strong upward trajectory over the past year, driven by solid fundamentals and consistent growth metrics.

Stock Performance and Market Context

On 9 January 2026, Eicher Motors Ltd (Stock ID: 501249) achieved a fresh 52-week peak at Rs.7610, marking a significant appreciation from its 52-week low of Rs.4644.1. The stock traded within a narrow range of Rs.54 during the day, closing with a modest gain of 0.44%, in line with the broader automobile sector’s performance. Notably, Eicher Motors is trading above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bullish momentum.

In comparison, the Sensex opened lower by 158.87 points but recovered to close marginally higher by 0.02% at 84,198.79. The benchmark index remains 2.33% shy of its own 52-week high of 86,159.02. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating a cautiously optimistic market environment. Mega-cap stocks are leading the market gains, supporting the overall positive sentiment.

Strong One-Year Returns Outperforming the Market

Eicher Motors has delivered an impressive 47.45% return over the last 12 months, significantly outperforming the Sensex’s 8.48% gain during the same period. This outperformance highlights the company’s resilience and growth potential within the competitive automobile sector. The stock’s market capitalisation stands at Rs.2,06,909 crore, making it the second largest company in its sector after Bajaj Auto, and it accounts for 25.13% of the sector’s total market value.

Fundamental Strength Underpinning the Rally

The stock’s rally is supported by strong long-term fundamentals. Eicher Motors boasts an average Return on Equity (ROE) of 20.03%, reflecting efficient capital utilisation. The company’s net sales have grown at an annualised rate of 23.26%, while operating profit has expanded at an even higher rate of 32.11%, underscoring robust operational performance. Additionally, the company maintains a low average debt-to-equity ratio of zero, indicating a conservative capital structure with minimal leverage.

Recent financial results for the half-year ended September 2025 further reinforce the company’s strength. The dividend per share (DPS) reached a high of Rs.70.00, while the Return on Capital Employed (ROCE) stood at an impressive 29.14%. The dividend payout ratio (DPR) for the year was also elevated at 44.85%, signalling a shareholder-friendly approach.

Institutional Confidence and Market Standing

Institutional investors hold a significant 41.7% stake in Eicher Motors, reflecting confidence from entities with extensive analytical resources. The company ranks among the top 1% of all 4,000 stocks rated by MarketsMojo, with a Mojo Score of 78.0 and a current Mojo Grade of Buy, upgraded from Hold on 11 November 2025. It holds a Market Cap Grade of 1, indicating its stature as a large-cap heavyweight. Within the large-cap universe, Eicher Motors is ranked 6th, and it stands 43rd across the entire market.

Consistent Market-Beating Performance

Beyond the one-year horizon, Eicher Motors has consistently outperformed the BSE500 index over the last three years, one year, and three months. This sustained outperformance is a testament to the company’s ability to generate value over multiple time frames. Its annual sales of Rs.21,427.66 crore represent 12.35% of the automobile industry’s total sales, highlighting its significant market share.

Valuation Metrics and Considerations

While the stock’s fundamentals are strong, valuation metrics indicate a premium pricing. Eicher Motors trades at a Price to Book Value ratio of 9.4, which is considered very expensive relative to its peers’ historical averages. The company’s Return on Equity of 23.1% supports this premium valuation to some extent. Over the past year, profits have increased by 19.7%, which, when compared to the 47.45% stock price appreciation, results in a Price/Earnings to Growth (PEG) ratio of 2.1. This suggests that the market is pricing in strong growth expectations.

Sector Position and Industry Impact

Within the automobile sector, Eicher Motors holds a prominent position as the second largest company by market capitalisation. Its contribution to the sector’s overall sales and market value is substantial, reinforcing its role as a key player. The stock’s recent price action and technical strength reflect both the company’s individual performance and the broader sectoral trends.

Summary of Key Metrics

To summarise, Eicher Motors Ltd’s new 52-week high of Rs.7610 is supported by:

One-year stock return of 47.45%, outperforming Sensex’s 8.48%

Strong average ROE of 20.03% and ROCE of 29.14%

Annual net sales growth of 23.26% and operating profit growth of 32.11%

High institutional holdings at 41.7%

Market cap of Rs.2,06,909 crore, second largest in the sector

Premium valuation with Price to Book Value of 9.4 and PEG ratio of 2.1

This combination of robust financials, market leadership, and technical momentum has propelled Eicher Motors to this notable milestone.

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