Buy Eicher Motors, target price Rs 4150: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Eicher Motors with a target price of Rs 4150. The current market price of Eicher Motors is Rs 3224.7.

Eicher Motors, incorporated in the year 1982, is a Large Cap company (having a market cap of Rs 88078.72 Crore) operating in Auto sector.

Eicher Motors key Products/Revenue Segments include Automobile - 2 Wheelers, Spare Parts & Components, Allied Products, Other Operating Revenue, Other Services, Scrap for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 3668.02 Crore, up 6.44 % from last quarter Total Income of Rs 3446.12 Crore and up 55.54 % from last year same quarter Total Income of Rs 2358.20 Crore. Company has reported net profit after tax of Rs 612.74 Crore in latest quarter.

The company’s top management includes Mr.Srinivasan Sandilya, Mr.Siddhartha Vikram Lal, Ms.Manvi Sinha, Mr.Inder Mohan Singh, Mr.Govindarajan Balakrishnan. Company has S R Batliboi & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 27 Crore shares outstanding.

Investment Rationale
The brokerage estimates Royal Enfield volumes to grow by 44% in FY23E, implying a residual growth of34%, or a run-rate of 83k units.

Promoter/FII Holdings
Promoters held 49.21 per cent stake in the company as of 30-Sep-2022, while FIIs owned 29.5 per cent, DIIs 9.93 per cent.