Please refer to important disclosures at the end of this report
Eicher Motors Limited (EIM) is an India-based company, which is engaged in
manufacturing automobile products and related components. The management
believes that lower logistics cost and better inventory management will aid
margin expansion, with three vendors moving close to its plant. The compan
expects a strong earnings momentum, driven by healthy volume growth across
the Royal Enfield (RE) and VECV businesses. Healthy CV demand is expected to
provide additional positives for VECV ahead rendering overall longterm view fo
Eicher Motors is favourable. The company is virtually debt free and has been
maintaining a healthy dividend payout of 21.35%. The company has reported a
good 45%+ CAGR profit growth over the past 5 years and also has shown a
good return on equity (ROE) of 30%+ over the last 3 years. Hence Buy.
CMP `24,119
Stock Info
Beta 0.8
Bloomberg Code
Shareholding Pattern (%)
Promoters 50.7
MF / Banks / Indian Fls 3.8
FII / NRIs / OCBs 32.4
Indian Public / Others
Abs. (%) 3m 1yr 3yr
Sensex 6.1 8.8 40.8
Eicher Motors 29.1 32.6 589.7
Market Cap (` cr) 65,598
52 Week High / Low 24,200/14,818
Avg. Daily Volume 4,732
Face Value (`)10
BSE Sensex 28,507
Nifty 8,777
Reuters Code EICH.BO
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Eicher Motors
Others | Automobile
September 22, 2016
Eicher Motors | Automobile
September 22, 2016
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
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