Eicher Motors Limited Just Beat EPS By 8.8%: Here's What Analysts Think Will Happen Next

Investors in Eicher Motors Limited (NSE:EICHERMOT) had a good week, as its shares rose 2.2% to close at ₹4,831 following the release of its first-quarter results. Eicher Motors reported ₹44b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹40.11 beat expectations, being 8.8% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Eicher Motors after the latest results.

Check out our latest analysis for Eicher Motors

Taking into account the latest results, the most recent consensus for Eicher Motors from 33 analysts is for revenues of ₹184.6b in 2025. If met, it would imply a satisfactory 4.1% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 8.9% to ₹166. Before this earnings report, the analysts had been forecasting revenues of ₹185.2b and earnings per share (EPS) of ₹165 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹4,686. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Eicher Motors analyst has a price target of ₹6,001 per share, while the most pessimistic values it at ₹3,401. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Eicher Motors' revenue growth is expected to slow, with the forecast 5.4% annualised growth rate until the end of 2025 being well below the historical 17% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.5% annually. Factoring in the forecast slowdown in growth, it seems obvious that Eicher Motors is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹4,686, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Eicher Motors. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Eicher Motors analysts - going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Eicher Motors Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.