Eicher Motors rose over 6% to hit a 2-year high today at Rs.2498 and continues to hover around the same levels, figuring currently among the top three gainers on the BSE.
The company actually posted a 40% (YoY) decline in net profit for Q2FY21 at Rs.343 crore on a 3% drop in total revenue at Rs.2134 crore.
So, despite this performance the stock hit a new high because punters are looking at demand revival in the coming months. Due to supply chain issues, its current order backlog stands at 1.25 lakh bookings from 40,000 pending bookings in August. The company plans to increase capacity by 5% in this fiscal.
It is also planning to launch one new bike every quarter and is exploring the option of getting into the mid-sized segment of 250cc to 750cc.