After the 22% increase in the last month, Royal Enfield maker Eicher Motors could rally more, said Bank America Securities. While maintaining its by -call call on stock, the brokerage raised the target price to Rs. 7,500 has been reduced (from Rs 6,300), indicating the possibility of a sidewalk of about 10%. The stock ended with more than 1% from Rs 6,893.

What is working for Eicher? According to the international broker, many factors. Its channel verification shows that the largest Eastern states such as Bihar, West Bengal and Uttar Pradesh-have a third of the industry-they remain underpened, with only 30%of the household ownership of the house.

Despite this, Royal Enfield has posted a sharp benefit of market share in these regions, which shows an improvement in its ambitious brand bridges, targeted production interventions and financing options in rural pockets.

In the second cluster of states – Haryana, Madhya Pradesh and Rajasthan – which accounts for about 20%, the penetration level is already 60%. Here, the demand is moving towards a premium bike.

TV and Eicher have been the main beneficiaries, Bofa has published that “additional demand buying” is leading to growth. In particular, Isher has become more accessible to new buyers thanks to GST Region, strengthening its case as a market-share gainer.

According to Bofa, GST rate cut is a game changer for premium manufacturers. For Eicher, it has reduced the effective cost of its flagship classic and bullet models below 2 million.

The sweet spot of these prices can upgrade the demand for a 150-250 cc segment, where ambitious buyers have long have Royal Enfield but were lacking by affordable. Brokerage notes that in the past, normal price intervention has also accelerated volumes, making GST a clear catalyst for further expansion.

Critically, the BOFA anti-l is not a braking system (ABS) safety standards or regulatory changes such as the rise of EV as close-term risks for the Isher.

Instead, it argues that the GST cut resolves the “growth of margin” debate, giving the company a headroom to extend the expansion without profitability – a strategy that adheres to it. Experts say that for the next year, Launch can add another level of Momentum.

“Ishire likes our preferred in two-wheelers,” Bofa wrote, “added that when all OEMs benefit from GST cuts, the best franchise strength of TV and isher’s exactly justifies their richest valuation multiplication. Back in the game, with supporting levers in assistant macros and policy talavinds, brokerage expects that Isheer will gain a great deal of ongoing two-wheeler upset.

(Disclaimer: The recommendations, suggestions, opinions and views given by experts are their own. This does not represent the views of the economic time)