Eicher Motors Limited is a leading player in the Indian automobile industry. It is the owner of the iconic RE (Royal Enfield) brand which is focused on mid-sized motorcycles (350-750 cc). It is sold in 60+ countries globally. Eicher has a joint venture with Sweden’s AB Volvo to create VEVC (Volvo Eicher Commercial Vehicles Limited). VECV is engaged in truck and bus operations, auto components business, and technical consulting services business
FINANCIALS 📊
• Stock is trading at a P/E of 44.7 while the industry P/E is at 37, Debt to equity ratio is at 0.01, and ROCE at 18.2%
• Eicher Motors reported 15.96% increase in net profit to INR 610 Cr in Q4FY22 from INR 526 Cr in Q4FY21
• Total income during Q4FY22, rose by 8.6% to INR 3,193.32 Cr, from INR 2,940.33 Cr in Q4FY21
• Q4FY22 Expenses increased to INR 2,434 Cr in comparison to INR 2,306 Cr in Q4FY21
• The board of the company approved a dividend of INR 21 per equity share for FY22
HIGHLIGHTS 📣
• Demand is resilient aided by new products (Classic and Scram 411). RE bookings continue to be higher than retail
• The exports are just taking off and exports are exptected to be very strong going forward driven by the launch of new products (launched Classic 350 and Scram 411 in FY22)
• To mitigate chip shortages, Eicher Motors has added two suppliers, which will improve supplies for RE post 2QFY23E
• Mr. B Govindranjan is elevated to the post of the CEO of Royal Enfield, from the role of COO
• The company’s total dealership pan-India as of FY22 end was at 2,118 with full-fledged dealership count at 1,063 and 1055 as studio stores
• For Eicher Motors raw material cost inflation to continue during Q1FY23, particularly in base metals
TECHNICAL ANALYSIS 📈
• Cup and handle pattern has been formed, which indicates the stock to move bullish
• When the stock price crosses 2,774.15, it would be the right time to enter the trade
Note: This is not a BUY/SELL recommendation. This is just an analysis for educational purpose
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