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Eicher Motors Limited, incorporated in 1982, is the flagship
company of the Eicher Group in India and a leading player in the
Indian automobile industry. Its 50-50 joint venture with the Volvo
group, VE Commercial Vehicles Limited, designs, manufactures
and markets reliable, fuel-efficient commercial vehicles of high
quality and modern technology, engineering components and
provides engineering design solutions. Eicher Motors
manufactures and markets the iconic Royal Enfield motorcycles.
The company has registered strong numbers for the quarter
ending December 2011. The sales moved up 27% to Rs. 15766.40
million for the December 2011 quarter as compared to Rs.
12435.10 million during the year-ago period. Operating profit
too jumped about 28% in Q4CY11 at Rs. 1538.40 million. EML
has witnessed sharp growth across all segments coupled with
increasing market gains. A comparatively good net profit
growth of 55.74% to Rs. 854.40 million was reported for the
Q4CY11 compared to Rs. 548.60 million of previous same
quarter.
In Q4 the industry grew by around 10.6% and Eicher has
outperformed the industry by a good margin; so for the year it
grew at 26.6% over 2010 and for Q4 it grew by 25% so it has
beaten the industry by 15% and that has resulted in market
share gains.
EML’s management look forward to another year of profitable
growth with up gradation of its existing product range, capacity
expansion and increasing its market reach.
Valuation
With leadership position in premium segment motorcycles and
leisure biking, strong distribution channels, robust volume growth
and high realizations and increasing market presence; Eicher Motors
Ltd. growth prospects looks promising. We believe Eicher Motors is
trading at an attractive valuation at 15.68x and 12.07x of FY12EPS of
Rs.134.78 and FY13EPS of Rs.174.98. We initiate a ‘BUY’ on the stock
with a target price of Rs.2600 (appreciation of about 23%) with the
medium to long term investment horizon.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Eicher Motors Limited, incorporated in 1982, is the flagship
company of the Eicher Group in India and a leading player in the
Indian automobile industry. Its 50-50 joint venture with the Volvo
group, VE Commercial Vehicles Limited, designs, manufactures
and markets reliable, fuel-efficient commercial vehicles of high
quality and modern technology, engineering components and
provides engineering design solutions. Eicher Motors
manufactures and markets the iconic Royal Enfield motorcycles.
The company has registered strong numbers for the quarter
ending December 2011. The sales moved up 27% to Rs. 15766.40
million for the December 2011 quarter as compared to Rs.
12435.10 million during the year-ago period. Operating profit
too jumped about 28% in Q4CY11 at Rs. 1538.40 million. EML
has witnessed sharp growth across all segments coupled with
increasing market gains. A comparatively good net profit
growth of 55.74% to Rs. 854.40 million was reported for the
Q4CY11 compared to Rs. 548.60 million of previous same
quarter.
In Q4 the industry grew by around 10.6% and Eicher has
outperformed the industry by a good margin; so for the year it
grew at 26.6% over 2010 and for Q4 it grew by 25% so it has
beaten the industry by 15% and that has resulted in market
share gains.
EML’s management look forward to another year of profitable
growth with up gradation of its existing product range, capacity
expansion and increasing its market reach.
Valuation
With leadership position in premium segment motorcycles and
leisure biking, strong distribution channels, robust volume growth
and high realizations and increasing market presence; Eicher Motors
Ltd. growth prospects looks promising. We believe Eicher Motors is
trading at an attractive valuation at 15.68x and 12.07x of FY12EPS of
Rs.134.78 and FY13EPS of Rs.174.98. We initiate a ‘BUY’ on the stock
with a target price of Rs.2600 (appreciation of about 23%) with the
medium to long term investment horizon.
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