Eicher Motors shares rise on Royal Enfield hopes

Last Updated: Tue, Nov 20, 2012 07:17 hrs

Shares in Eicher Motors gained 3.5 percent on hopes of strong demand at its two-wheeler unit Royal Enfield this festive season, dealers said.

Macquarie initiated its coverage on Eicher Motors on Monday with an "outperform" rating and set a target of 3,235 rupees.

Macquarie said it sees capacity expansion in motorcycles, market share gain in heavy trucks and the start of production of Volvo's medium-duty engines to be the key drivers of growth.

Eicher has a 50-50 joint venture in India with Volvo AB.

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