Eicher Motors Ltd Stock Analysis

BSE: 505200 | NSE: EICHERMOT | Automobile Two & Three Wheelers | Large Cap

BSE Share Price Aug 05, 18:03
3087.45 -57.00 (-1.81%)

DeciZen - Make an Informed Decision on Eicher Motors

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Eicher Motors Price Chart

P/E Ratio (CD) :
50.36
Market Cap :
84,419.8 Cr.
52-wk low :
2,110
52-wk high :
3,197.9
Bole Toh?

1. Is Eicher Motors Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Eicher Motors Ltd is a good quality company.

2. Is Eicher Motors Ltd undervalued or overvalued?

The key valuation ratios of Eicher Motors Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Eicher Motors Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Eicher Motors Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Eicher Motors:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Eicher Motors Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Dec'12Dec'13Dec'14Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 12.1%12.9%16.9%36.6%36.8%31.1%27.2%19.3%12.6%13.9%-
Value Creation Index NA-0.10.52.32.31.81.40.70.1NA-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 6,3906,8108,7384,9397,0338,9659,7979,1548,72010,29810,298
YoY Gr. Rt. %-6.6%28.3%-43.5%42.4%27.5%9.3%-6.6%-4.7%18.1%-
Adj EPS 11.313.921.139.561.671.980.967.549.561.161.3
YoY Gr. Rt. %-22.4%52.4%87.1%56%16.8%12.6%-16.7%-26.6%23.4%-
BVPS (₹) 657692.8106.9194.8255.7324.8363415.6459.7459.6
Adj Net Profit 3063745721,0721,6761,9602,2081,8421,3541,6711,676
Cash Flow from Ops. 4967161,0471,1701,7082,4821,5751,6941,6911,527-
Debt/CF from Ops. 0.10.10.100.10.10.10.10.10-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 5.5%7.9%1.7%18.1%
Adj EPS 20.6%-0.2%-9%23.4%
BVPS 24.318.712.310.6
Share Price 30.9% -0.8% 22.5% 12.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Dec'12Dec'13Dec'14Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 18.819.72543.437.231.727.719.512.613.913.3
Op. Profit Mgn % 8.710.512.827.431.131.329.72420.521.221.5
Net Profit Mgn % 7.17.47.519.321.821.520.119.815.215.616.3
Debt to Equity 00000000000
Working Cap Days 72807798523339456587161
Cash Conv. Cycle 3-2-6-31-31-35-35-28-27-2876

Recent Performance Summary

Sales growth is good in last 4 quarters at 38.21%

Return on Equity has declined versus last 3 years average to 13.30%

Sales growth has been subdued in last 3 years 1.68%

Net Profit has been subdued in last 3 years -8.95%

Latest Financials - Eicher Motors Ltd.

Standalone Consolidated
TTM EPS (₹) 58 61.3
TTM Sales (₹ Cr.) 10,123 10,298
BVPS (₹.) 393.3 459.6
Reserves (₹ Cr.) 10,726 12,540
P/BV 7.85 6.72
PE 53.22 50.36
From the Market
52 Week Low / High (₹) 2110.00 / 3197.90
All Time Low / High (₹) 0.90 / 3348.39
Market Cap (₹ Cr.) 84,420
Equity (₹ Cr.) 27.3
Face Value (₹) 1
Industry PE 29

Management X-Ray of Eicher Motors :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

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Key Ratios of Eicher Motors

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Eicher Motors Ltd

Eicher Motors Limited is the flagship company of the Eicher Group in India and a leading player of the Indian automobile industry. The Company is the listed parent of Royal Enfield, the global leader in middleweight motorcycles. The world’s oldest motorcycle brand in continuous production, Royal Enfield has made its distinctive motorcycles since 1901. Focussed on bringing back simple, yet engaging and accessible motorcycling, Royal Enfield operates in India, and over 60 countries around the world with modern development facilities in Leicestershire, UK and Chennai, India. Royal Enfield makes its motorcycles in Chennai, Tamil Nadu for the world. Royal Enfield has evolved into an experiential brand. Royal Enfield with its motorcycle that combines modern-day elements with the brand’s heritage, garners immense enthusiasm amongst global motorcyclists. In addition to motorcycles, Eicher has a joint venture with Sweden’s AB Volvo - Volvo Eicher Commercial Vehicles Limited (VECV) - has pioneered modernisation of commercial vehicles in India and other developing countries.

Business area of the company

The Company is engaged in the manufacturing and selling of motorcycles, spare parts and related services.

Products

  • Motorcycles 
  • Commercial Vehicles (CV) 
  • Engineering Components

Awards

2015-16

  • Emerging Company of the Year award - ET Awards 2015 
  • Best Company of the Year award - Business Standard Annual Awards, 2015

2016-17

  • The Himalayan won the Motorcycle of the Year Award up to 500 cc at the NDTV Car and Bike Awards 2017.

2017-18

  • VECV was honoured with ‘Excellence in HR’ at the Manufacturing Today Awards 2017
  • VECV won ET Now HR Leadership Awards 2018 in the Best Talent Management Strategy

2018-19

  • VECV won ‘Best Risk Management Framework and System Automotive and Auto Ancillary’ award by ICICI Lombard and CNBC TV-18
  • Interceptor 650 won the prestigious ‘Best Modern Classic Middle-Weight’ a prestigious category award at the Thailand Bike of the Year 2019 awards.

2019-20

  • Team Eicher won the Gold Medal in the General Management Category at AIMA Corporate Management Olympiad.
  • VECV won the Best Experiential and Brand Experiences award for ‘Samvaad’, an initiative by Eicher Buses, at BTVI National Awards for Marketing Excellence.

Milestones

  • 1948: Goodearth Company set up to sell and service imported tractors
  • 1952-57: Goodearth Company imported and sold about 1500 tractors in India
  • 1958: Eicher Tractor Corporation of India Limited incorporated
  • 1959: First indigenous Eicher tractor built. Eicher came out with India’s first indigenously built tractor from its Faridabad factory.
  • 1960: Eicher changed name from Eicher Tractor Corporation of India Private Limited to Eicher Tractors India Limited
  • 1965-75: 100% indigenization achieved in Eicher Tractors
  • 1980: Eicher Goodearth Limited name given to Eicher.
  • 1982: Collaboration agreement with Mitsubishi for the manufacture of Light Commercial Vehicles signed in Tokyo. 
  • 1982: Incorporation of Eicher Motors Limited
  • 1985: Silver Jubilee Year for Eicher
  • 1986: Eicher Motors Limited springs into operation
  • 1987: Eicher Tractors went public
  • 1990: Eicher Goodearth buys 26% equity stake in Enfield India Limited
  • 1991: ECS launched; Eicher takes over Ramon & Demm.
  • 1992: Eicher Tractors Limited selected as ‘Company of the Year’ for 1990-91 in the four-wheeler category comprising commercial vehicles, passenger cars, jeeps and tractors.
  • 1993: Eicher adopts new identifier. Eicher acquires majority stake in Enfield India (60% equity shareholding)
  • 1994: Eicher Motors Limited ends the technical assistance agreement with Mitsubishi after a successful transfer of technology and achieving total indigenisation. Enfield India Limited changed its name to Royal Enfield Motors Limited
  • 1996: Eicher Tractors Limited amalgamated with Royal Enfield Motors to form Eicher Limited
  • 2005: Eicher Motors Limited has disinvested the businesses of tractors and engines to TAFE Motors & Tractors Limited (TMTL).
  • 2008: Volvo Group and Eicher Motors Limited established VE Commercial Vehicles Limited (VECV).
  • 2010: The company launched the VE-series of Heavy Duty trucks
  • 2012: Royal Enfield launches the Thunderbird 500 and 350 models.
  • 2013: Royal Enfield opens second manufacturing facility in Oragadam, Tamil Nadu. 
  • 2014: Royal Enfield opens its first concept store in Saket, New Delhi and launches its first exclusive store in London, UK.
  • 2015: Royal Enfield acquires erstwhile collaborators Harris Performance of the U.K., a motorcycle engineering and design firm, to enhance its engineering and product design capabilities.
  • 2015: Royal Enfield sets up its first direct distribution subsidiary outside India, in North America. Royal Enfield North America (RENA) is headquartered in Milwaukee, Wisconsin.
  • 2016: Royal Enfield debuts its first purpose-built adventure tourer motorcycle - the Himalayan. With the all-new LS410 engine and terrain-tested chassis, it promises the ride of a lifetime on all roads and no roads
  • 2017: Royal Enfield moves into its state-of-the-art Tech Centre at Leicestershire, UK to design and develop new motorcycle platforms for the global market
  • 2018: Royal Enfield launches its first air-cooled parallel twin cylinder motorcycles in 50 years - Continental GT 650 and Interceptor INT 650 for the International and domestic market
  • 2019: Royal Enfield transitions to BS VI emission norms for its current motorcycle portfolio and grew its retail network by opening studio stores - a unique, compact format that will house the entire range of Royal Enfield motorcycles
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