Eicher Motor Ltd. Superlative performance, ACCUMULATE : Target Price: Rs 1,505 :Emkay

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Eicher Motor Ltd.

Superlative performance, Maintain ACCUMULATE

ACCUMULATE

CMP: Rs 1,158                                       Target Price: Rs 1,505

---

n     Strong performance across segments. Standalone EBIDTA at Rs 198mn is 42% abv est. Subsidiaries EBIDTA at Rs 1.4bn is 77% abv est. Cons. EBIDTA at Rs 1.6bn is 19% abv est.

n     Most of the commodity pressures have filtered in the P&L except for some pending negotiations. Expect to outperform the M&HCV industry with rising share in HD trucks

n     Valued the stock on SOTP basis with TP of Rs 1,505 (current business value – Rs 1,351, NPV of engine business – Rs 154)

n     Remains a preferred play in the CV space.  Find valuations attractive due to high FCF generation and non cyclical revenue stream. Key risk -  cyclical slowdown in the industry