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Ace automobile company Eicher Motors has announced significant financial results. This led to the price in the share on Friday. Besides this Eicher motor was a top performer in Nifty. During trading, it went up more than 7% to close with a gain of 5.86%. Brokerages have given buy ratings on the stock.

A major factor for the stellar performance of Eicher Motors was good results and management commentary. In the 4th quarter of FY23, the company’s earnings went up 19.1% from 3,193 crore rupees to 3,804 crore rupees. While operating profit increased 23% from Rs 757 crore to Rs 934 crore. Operating margin also improved from 23.7% to 24.5%. While expectations were around 24%. Company’s profit also increased 49%. It shot up from Rs 610 crore to Rs 906 crore.

However, gain in other income has also provided support. Besides this, the company has given strong earnings guidance for FY 2023-24. Also, Royal Enfield has announced an investment of Rs 1,000 crore in EVs and petrol bikes.

Brokerage houses are also bullish on the company. ICICI Securities maintained a buy rating on the company and increased the target price from Rs 3,743 to Rs 3,953. Meanwhile, Prabhudas Lilladhar maintained a buy rating on the company with a target price of Rs 4030