Stock Performance and Market Context
On 27 Feb 2026, Eicher Motors Ltd recorded its highest price in the last 52 weeks at Rs.8232.8, marking a substantial rise from its 52-week low of Rs.4756.2. This represents a remarkable appreciation of approximately 73% over the period. Despite this peak, the stock experienced a minor decline of 1.17% on the day, underperforming the automobile sector by 0.61%. Notably, the stock has retraced slightly after two consecutive days of gains, indicating a short-term consolidation phase.
The broader market context saw the Sensex open flat but then decline by 329.60 points, or 0.43%, closing at 81,890.88. The Sensex remains below its 50-day moving average, although the 50-day average itself is positioned above the 200-day average, signalling a mixed technical backdrop. In contrast, Eicher Motors is trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – highlighting its strong upward trend relative to the market.
Long-Term Growth and Financial Strength
Over the past year, Eicher Motors has delivered an impressive total return of 64.32%, significantly outperforming the Sensex’s 9.71% gain during the same period. This outperformance is supported by the company’s solid fundamentals. The average Return on Equity (ROE) stands at a healthy 20.03%, reflecting efficient capital utilisation. Net sales have grown at an annualised rate of 23.09%, while operating profit has expanded even more rapidly at 32.76%, underscoring strong operational leverage.
The company maintains a conservative capital structure with an average debt-to-equity ratio of zero, indicating no reliance on debt financing. This financial prudence contributes to its resilience and ability to sustain growth.
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Recent Financial Highlights
The company’s latest six-month net sales reached Rs.12,285.63 crores, reflecting a robust growth rate of 33.02%. Return on Capital Employed (ROCE) for the half-year period peaked at 29.14%, while quarterly PBDIT hit a record Rs.1,556.72 crores. These figures demonstrate strong profitability and efficient capital deployment in recent quarters.
Institutional investors hold a significant 41.75% stake in Eicher Motors, indicating confidence from well-resourced market participants who typically conduct thorough fundamental analysis. This level of institutional ownership often supports stock price stability and liquidity.
Market Position and Sector Influence
With a market capitalisation of Rs.2,25,212 crores, Eicher Motors is the second-largest company in the automobile sector, trailing only Bajaj Auto. It accounts for 26.42% of the sector’s total market value, underscoring its dominant position. The company’s annual sales of Rs.22,568.58 crores represent 12.33% of the industry’s total, further highlighting its scale and influence.
Its strong performance has earned it a Mojo Score of 78.0 and a Mojo Grade upgrade from Hold to Buy as of 11 Nov 2025, reflecting improved confidence in its fundamentals and growth prospects. Eicher Motors is also ranked among the top 1% of all 4,000 stocks rated by MarketsMojo, a testament to its quality and market standing.
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Valuation and Risk Considerations
Despite its strong growth and market leadership, Eicher Motors trades at a premium valuation. The Price to Book Value ratio stands at 10.2, which is considered very expensive relative to peers. The company’s Price/Earnings to Growth (PEG) ratio is 1.9, reflecting a valuation that factors in its earnings growth but suggests limited margin for error.
Profit growth over the past year was 21.6%, somewhat trailing the stock’s 64.32% price appreciation, indicating that the market has priced in substantial future growth. Investors should note this premium positioning when analysing the stock’s current price levels.
Technical Momentum and Trend Analysis
The stock’s position above all major moving averages signals sustained bullish momentum. This technical strength, combined with the company’s fundamental robustness, has propelled Eicher Motors to its new 52-week high. The recent slight pullback after two days of gains may represent a healthy pause in the rally rather than a reversal.
In comparison, the Sensex’s trading below its 50-day moving average suggests a more cautious market environment, further highlighting Eicher Motors’ relative strength within the broader market.
Summary
Eicher Motors Ltd’s attainment of a new 52-week high at Rs.8232.8 is a clear indicator of its strong market performance and underlying business strength. Supported by robust sales growth, high profitability, conservative leverage, and significant institutional backing, the stock has outpaced the broader market and its sector peers over the past year. While valuation metrics indicate a premium, the company’s dominant position and consistent financial results have sustained investor confidence, reflected in its upgraded Mojo Grade and top-tier ranking.
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