Analyzing Eicher Motors and Maruti Share Prices: Technical vs. Fundamental Analysis Why not?
Should you buy Eicher Motors stocks rather than spend money on a Royal Enfield Motorcycle? Sure! It can, at the least, give you the opportunity to make money later. Situations are in your favour though. The recent update of Eicher Motor share price states that there has been a 6% surge in the early trading session. Maruti Suzuki, on the other hand, ended 3% higher.
This factor is noted by UBS, the global brokerage firm. Its rating update can help you finalise the purchase decision of the stocks. The rating says ‘buy’ now. Previously, it has been ‘Neutral’. Both these stocks are valuable today.
Eicher Motors and Maruti: An Overview of their Stocks
Eicher Motors is actually the parent company of Royal Enfield, which manufactures mid-sized or mid-weight motorcycles.
And you can buy its stock now.
When you want to make an investment decision for Eicher motor stocks, then there is more good news coming your way. The Royal Enfield 450 cc motorcycles are expected to get into the domain of competitive pricing.
This is just the surface information that suggests you may invest in the shares of Eicher Motors. So if you are checking motorcycle share prices then it might not be entirely the wrong decision.
And if you are interested to make another purchase, then go for other kinds of markets such as the Maruti or other four-wheeler market sales. Check Maruti share price online if that’s something you prioritise for investment.
Nuvama recommends Maruti at a price target of Rs. 11,400. It is predicted that the share prices will continue to rise in the future.
But you need to know more.
Before You Check Either Brand: Learn the Pros and Cons of These Stocks
Anything comes with particular advantages and disadvantages. If you are conscious of them, then you can surely make a difference in buying the stocks you want. For Eicher Motor and Maruti stocks, the points mentioned below can help you out:
Advantages to Get with Automobile Stocks
Eicher otors can give you productive financial privileges because of its market share. Royal Enfield is a motorcycle brand on a global level, which expands its market size to a huge extent. The same can be said about Maruti, with presence in multiple countries across the world.
On a surprising note – particularly in the case of buying stocks – Eicher Motors has no promotor pledge as of now. In fact, the company has no debt till now.
In the Light to Medium Duty Segment, Eicher Motor contains a 29.4% market share, whereas it has a whopping 95% market share in the market of mid-size of the midweight motorcycle market. Maruti’s market share, on the other hand, is 41.7%, but it is a rise from the previous year.
Surprisingly enough, Eicher Motors’ supply chain and distribution are in the low-cost segment.
Disadvantages of Eicher Motor Stocks
Disadvantages are clear in a country like India where you can expect many automobile giants to work along. To tell you the truth, Eicher Motor and Maruti do face competitors from brands such as Bajaj Auto, Mahindra and many other automobile giants.
The pandemic (COVID-19) affected the Trailing Twelve Months Profit of both the companies.
Eicher Motors has international competitors, too, because they are going to be present in the Motorcycle market. One of them is…you guessed it…Harley Davidson. Maruti has many given its range of vehicles catering to a diverse income group.
What Makes Investing in Automobile Shares Relevant?
If you are paying close attention, then you can understand that the company is outperforming the indices.
In recent observations, you can see that Eicher Motor’s share prices outperform both the indices to which investors are indebted: Nifty 50 and Sensex. This is a good sign for investing in the brand’s stocks.
Even if doubts boggle your mind and you are interested in checking Maruti share prices, know that experts expect Eicher Motors to outperform the indices in the coming years. That said, we can consider the points mentioned below as the reasons to invest in automobile stocks:
The price of the vehicles increases by a 10% to 12% margin in several quarters. It makes a strong plus point to invest in Eicher Motor stocks.
According to market forecasts, the market share prices of automobiles are expected to grow in the future because of the growing income of the country.
With these factors, your investment needs for Eicher Motor shares is perfectly relevant. You can check Eicher Motor share price now in order to make the investment or decide to make it.
To Conclude
Whether it is Eicher Motor market share or Maruti share price, try to get in touch with a professional trading platform for all your trading needs. You don’t want to make mistakes in this department. Make your move as calculated as possible and speak to a trading professional for further advice. It will bear you better results in the future.
