Shares of Eicher Motors Limited plunged 7 percent to Rs 4,958 in early trade on February 11 after the company's third-quarter earnings missed Street estimates. However, brokerages still seem bullish on the stock, led by positive management commentary for the coming quarters.

The Royal Enfield maker's net profit, revenue, and EBITDA posted double-digit growth. The two-wheeler major said its Q3 net profit rose 17.5 percent year-on-year to Rs 1,170.5 crore, which was slightly below Moneycontrol’s estimates.

The company’s revenue from operations increased 19 percent on-year to Rs 4,973.1 crore, while earnings before interest, tax, depreciation, and amortization (EBITDA) rose 10 percent to Rs 1,201 crore.

Despite this miss, Goldman Sachs has maintained a 'Buy' rating on Eicher Motors but lowered the target price to Rs 5,900 from Rs 6,000. The brokerage noted that the company’s third-quarter performance was in line with expectations, with a deeper focus on products and marketing driving growth. Volume momentum is expected to continue in the fourth quarter. Additionally, regulatory-driven price hikes have been more varied compared to the rest of the industry. However, Goldman Sachs has cut its FY25-27 earnings per share (EPS) estimates by 5.4 percent due to higher marketing expenses.

Nuvama Institutional Equities, with a 'buy' call and a price target of Rs 6,100 suggests that Royal Enfield's (RE) domestic sales grew 13 percent in Q3FY25, outperforming the industry, which saw a 2 percent decline. This momentum is expected to continue, driven by the strong acceptance of the new Bullet variant—Battalion Black—along with upcoming models and variants such as the Bear 650, Classic 650, Guerrilla 450, Scram 450, and new Classic 350 variants, supported by an aggressive marketing push.

The domestic brokerage also said that the company's strategic shift focuses on key models like the Classic and Bullet, incorporating product interventions based on market feedback and ramping up marketing efforts for new launches. The Battalion Black variant, featuring its retro appeal, has been well received. Meanwhile, new product launches remain on track—Bear 650 is now available in America, Europe, and India, while the Classic 650, currently launched in the UK and Europe, is set for an India debut in Q4FY25.

On exports, Eicher is cautiously optimistic as sentiments remain weak at the current juncture. "For now, the approach remains steady and strategic. "It is doing well. Not that the macros are behind, but we are going slowly and steadily, and our progress has been very good," the management affirmed.

From April to December, the company sold around 70,000 units overseas, marking a robust 38.5 percent year-on-year growth."More importantly, retail growth has been very good. It is tracking ahead of wholesale throughout the year," said Eicher’s management, emphasizing that retail sales are 8-9 percent higher than wholesale numbers.

At about 9:20 am, shares of the company were trading at Rs 5,018, lower by 5.9 percent from the last close on the NSE. Eicher Motors' share price has risen nearly 5 percent in the last month.