Eicher Motors Ltd., incorporated in the year 1982, is a Large Cap company (having a market cap of Rs 75157.57 Crore) operating in Auto sector.
Eicher Motors Ltd. key Products/Revenue Segments include Automobile – 2 Wheelers, Spare Parts & Components, Traded Goods, Other Services, Export Incentives, Scrap and Other Operating Revenue for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 2358.20 Crore, up 12.49 % from last quarter Total Income of Rs 2096.32 Crore and up 5.58 % from last year same quarter Total Income of Rs 2233.58 Crore. Company reported net profit after tax of Rs 363.38 Crore in latest quarter.
Investment Rationale
Royal Enfield’s (RE) Q2 margin of 20.3% (+280bps QoQ) was aided by a benefit of INR400mn in employee expenses (gains due to unvested ESOPs). From here on, the management expects the chip shortage to gradually lessen (which is similar to the commentary from other OEMs). While supplies are expected to improve, our channel checks indicate that demand for the new ‘Classic 350′ is lukewarm. It maintains REDUCE rating because it believes the stock is currently overvalued. It has set a revised Sep’23 target price of INR 2,400 and a 23x valuation for the core business (which is a 25% premium to mass OEMs).
Promoter/FII Holdings
Promoters held 49.22 per cent stake in the company as of 30-Sep-2021, while FIIs owned 30.28 per cent, DIIs 8.65 per cent.
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