HDFC Securities has downgraded Eicher Motors to 'Neutral' from 'Buy' with target price of Rs 5,853 as against current market price (CMP) of Rs 5,111 in its report.

Commenting on the investment rationale, HDFC Securities said, ''Post our interaction with the management of Eicher Motors (EIM) we retain our bullish stance on the business. However we believe most of the positives are already in the price and hence reduce EIM to Neutral (from Buy) with a revised target price of Rs 5,853/sh.

EIM’s 2W (RE) business continues to ride on strong brand, robust demand and planned capacity expansion. While VECV continues to struggle on weak demand, we expect new launches and network expansion to benefit in longer tersm, leading to market share gains. Supplies from new engine facility for captive and Volvo global requirements will be further earnings accretive for the company.

At CMP, EIM trades at 21.4x CY15E consol EPS of Rs 270/sh. Reduce to Neutral (from Buy) with a revised SOTP of Rs 5,853/sh given recent run up.''

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.