Citi retains Eicher Motors stock as a top auto pick

Published on 10/08/2026 at 11:14 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

September sales reached 133,958, up 8 percent year over year. Eicher Motors stock closed at INR 6,960.00 on October 7, 2026, after INR 7,051.00.

Eicher Motors, INE066A01021, Illustration mit AI erstellt.

Eicher Motors (ISIN INE066A01021) was retained among Citi's top auto picks on October 8, 2026, as Financial Express reported. The call puts festive-season demand, vehicle volumes and margin recovery at the center of the next test for the Royal Enfield maker.

Citi keeps Eicher among top picks

Financial Express reported on October 8, 2026, that Citi retained Eicher Motors, Maruti Suzuki and Mahindra & Mahindra as its top picks in India's auto sector. The report said recent price increases, product mix and operating leverage could partly offset higher steel, copper, plastics and rubber costs.

That combination gives the stock a two-sided operating setup. Healthy volumes can support fixed-cost absorption, while input inflation and a tougher year-over-year base could restrain gross-margin improvement during the second half of fiscal 2026-27.

Sales growth meets a tougher base

Royal Enfield sold 133,958 motorcycles in September 2026, an 8 percent increase from 124,328 units a year earlier, according to CNBC TV18. Domestic sales rose 7 percent to 121,326 units, while exports increased 17 percent to 12,632 units.

The mix was uneven. Motorcycles up to 350cc and electric vehicles grew 13 percent to 121,495 units, whereas models above 350cc fell 26 percent to 12,463 units, making product mix a key margin variable for the company.

Eicher Motors stock stays below its high

NSE data showed Eicher Motors stock closing at INR 6,960.00 on October 7, 2026, down INR 91.00, or 1.29 percent, from the prior close of INR 7,051.00. The same session recorded a high of INR 7,050.00 and a low of INR 6,960.00.

The 52-week range was INR 6,442.00 to INR 8,230.00, while market capitalization stood at INR 1.9 trillion on October 7, 2026. The close was also 15.43 percent below the 52-week high, leaving the market to weigh Citi's constructive sector view against the company's exposure to costs, demand mix and the tougher comparison base.