Eicher Motors Ltd. Market share gain to continue, Retain BUY ::Emkay

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

Eicher Motors Ltd.

Market share gain to continue, Retain BUY

BUY

CMP: Rs1,335                                        Target Price: Rs1,700

---

n     EML has been gaining market share in CV space. Expect the same to continue as 7.5-12 ton segment outperforms M&HCV trucks during cyclical downturn

n     EML (~40% mkt share) to be the key beneficiary as 7.5-12ton contributes ~65% of truck volumes. Success in 12-16ton segment visible with highest ever market share (~7%)

n     Well poised to deliver strong growth in higher tonnage segment  driven by  strong balance sheet, support from Volvo and focused expansion plans

n     Upgraded to BUY post Q2CY11 results on strong earnings visibility. TP of Rs 1,700 based on SOTP. Key risk -  sharp downturn in CV demand