Eicher Motors Ltd’s fundamental analysis highlights key financial metrics including market capitalization of ₹128,120.47 crore, PE ratio of 32.02, debt-to-equity ratio of 2.32, and return on equity of 24.22%. These figures reflect the company’s financial health and current market valuation.
Content:
- Eicher Motors Ltd Overview
- Eicher Motors Financial Results
- Eicher Motors Financial Analysis
- Eicher Motors Company Metrics
- Eicher Motors Stock Performance
- Eicher Motors Peer Comparison
- Eicher Motors Shareholding Pattern
- Eicher Motors History
- How To Invest In Eicher Motors Ltd Share?
- Eicher Motors Limited Fundamental Analysis – FAQs
Eicher Motors Ltd Overview
Eicher Motors Ltd is an Indian automobile company primarily engaged in manufacturing and selling motorcycles and commercial vehicles. It operates in the automotive sector, with its flagship brand Royal Enfield leading the motorcycle business and VE Commercial Vehicles for the commercial vehicle segment.
The company has a market capitalization of ₹128,120.47 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 8.19% below its 52-week high and 42.78% above its 52-week low.
Eicher Motors Financial Results
Eicher Motors Ltd demonstrated robust financial growth from FY 22 to FY 24, with sales rising from ₹10,298 crore to ₹16,536 crore and net profit increasing from ₹1,677 crore to ₹4,001 crore. The company consistently enhanced its profitability and EPS during this period.
1. Revenue Trend: Sales increased from ₹10,298 crore in FY 22 to ₹14,442 crore in FY 23, and further to ₹16,536 crore in FY 24, indicating strong revenue growth.
2. Equity and Liabilities: Detailed equity and liabilities aren’t provided, but the consistent rise in expenses from ₹8,126 crore in FY 22 to ₹12,209 crore in FY 24 suggests increased operational and possibly financial liabilities.
3. Profitability: Operating Profit Margin (OPM) improved from 21% in FY 22 to 24% in FY 23, and further to 26% in FY 24, reflecting enhanced operational efficiency.
4. Earnings per Share (EPS): EPS rose significantly from ₹61.33 in FY 22 to ₹106.56 in FY 23, and then to ₹146.18 in FY 24, showcasing strong growth in profitability per share.
5. Return on Net Worth (RoNW): While RoNW isn’t explicitly mentioned, the increasing net profit suggests a positive impact on RoNW, indicating better returns on shareholders’ equity.
6. Financial Position: The financial position of the company has strengthened with EBITDA rising from ₹2,613 crore in FY 22 to ₹5,403 crore in FY 24, despite rising interest and depreciation costs, indicating robust financial health and effective management.
Eicher Motors Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 16536 | 14442 | 10298 |
| Expenses | 12209 | 10999 | 8126 |
| Operating Profit | 4327 | 3444 | 2172 |
| OPM % | 26 | 24 | 21 |
| Other Income | 1076 | 595.11 | 440.82 |
| EBITDA | 5403 | 4039 | 2613 |
| Interest | 50.88 | 28.02 | 18.78 |
| Depreciation | 597.6 | 526.21 | 451.93 |
| Profit Before Tax | 4754 | 3484 | 2142 |
| Tax % | 25.26 | 25.42 | 24.55 |
| Net Profit | 4001 | 2914 | 1677 |
| EPS | 146.18 | 106.56 | 61.33 |
| Dividend Payout % | 34.89 | 34.72 | 34.24 |
* Consolidated Figures in Rs. Crores
Eicher Motors Company Metrics
Eicher Motors’ market capitalization is ₹128,120.47 crore, with a book value of ₹659 per share. The face value per share is ₹1. The company has an asset turnover ratio of 0.85, total debt of ₹419.44 crore, and ROE of 24.22%. Quarterly EBITDA is ₹1,565.6 crore, and the dividend yield is 1.09%.
Market Capitalization:
Market Capitalization represents the total market value of Eicher Motors’ outstanding shares, amounting to ₹128,120.47 crore.
Book Value:
The book value per share of Eicher Motors is ₹659 indicating the value of the company’s net assets divided by its shares outstanding.
Face Value:
The face value of Eicher Motors’ shares is ₹1, which is the nominal value of each share as stated on the share certificate.
Asset Turnover Ratio:
The Asset Turnover Ratio of 0.85 measures how efficiently Eicher Motors uses its assets to generate sales revenue or sales income.
Total Debt:
The Total Debt of Eicher Motors stands at ₹419.44 crore, representing the total amount of money the company owes to creditors.
Return on Equity (ROE):
The ROE of 24.22% measures Eicher Motors’ profitability by revealing how much profit the company generates with the money shareholders have invested.
EBITDA (Q):
The quarterly EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Eicher Motors is ₹1,565.6 crore, indicating the company’s operating performance.
Dividend Yield:
The dividend yield of 1.09% shows the annual dividend payment as a percentage of Eicher Motors’ current share price, indicating the return on investment from dividends alone.
Eicher Motors Stock Performance
Eicher Motors Ltd showcased impressive returns with 36.3% in one year, 18.7% over three years, and 21.2% over five years, demonstrating strong growth potential and consistent financial performance. This reflects the company’s robust capacity to deliver substantial returns to its investors across various time frames.
| Period | Return on Investment (%) |
| 1 Year | 36.3 |
| 3 Years | 18.7 |
| 5 Years | 21.2 |
Example: If an investor had invested 1,000 in Eicher Motors’ stock:
1 year ago, their investment would be worth ₹1,363.
3 years ago, their investment would have grown to approximately ₹1,187.
5 years ago, their investment would have increased to about ₹1,212.
Eicher Motors Peer Comparison
Eicher Motors Ltd, with a CMP of ₹4597.15 and a P/E ratio of 31.47, boasts a market cap of ₹125,947.8 Crores and a one-year return of 36.33%. Comparatively, TVS Motor Co. and Hero Motocorp show higher one-year returns of 93.35% and 70.89%, respectively, indicating a competitive performance within the sector.
| Name | CMP Rs. | P/E | Mar Cap Rs.Cr. | 1Yr return % | Vol 1d | 1mth return % | From 52w high | Down % | 6mth return % |
| Eicher Motors | 4597.15 | 31.47 | 125947.8 | 36.33 | 1108038 | -3.31 | 0.91 | 9.13 | 19.69 |
| TVS Motor Co. | 2574.55 | 70.94 | 121525.1 | 93.35 | 2394942 | 7.35 | 0.98 | 1.74 | 26.35 |
| Hero Motocorp | 5241.15 | 27.84 | 104951.2 | 70.89 | 522285 | -4.74 | 0.89 | 11.08 | 6.77 |
| Wardwizard Inno. | 55.35 | 97.36 | 1442.94 | 51.64 | 743966 | -5.22 | 0.64 | 36.01 | -21.13 |
| Urja Global | 21 | 418.94 | 1101.82 | 104.88 | 3766895 | 0.77 | 0.5 | 49.81 | -31.82 |
Eicher Motors Shareholding Pattern
Eicher Motors Ltd’s shareholding pattern shows slight variations from December 2023 to June 2024. Promoters maintained around 49.11% ownership, while FII holdings decreased from 30.27% to 28.81%. DII investments increased from 9.83% to 11.94%, and retail and others slightly decreased from 10.76% to 10.14%.
| Jun-24 | Mar-24 | Dec-23 | |
| Promoters | 49.11 | 49.15 | 49.15 |
| FII | 28.81 | 28.95 | 30.27 |
| DII | 11.94 | 11.14 | 9.83 |
| Retail & others | 10.14 | 10.77 | 10.76 |
Eicher Motors History
Eicher Motors Limited is a prominent Indian automobile company with a strong focus on the manufacturing and selling of motorcycles and related products. The company primarily operates in the automotive segment, encompassing all activities from development and design to manufacture, assembly, and sale of two-wheelers, along with related parts and accessories.
The company’s flagship brand, Royal Enfield, is at the forefront of its motorcycle business. Royal Enfield has gained significant popularity and market share with its range of motorcycles, including models like the Interceptor 650, Continental GT 650, Classic, Bullet, and Himalayan. In addition to motorcycles, Royal Enfield also offers a range of apparel and accessories, catering to the lifestyle aspect of motorcycle enthusiasts.
Eicher Motors has diversified its business through a joint venture with AB Volvo, forming VE Commercial Vehicles Limited (VECV). This venture has expanded the company’s portfolio to include a range of Eicher-branded trucks and buses, establishing a strong presence in the commercial vehicle sector. This dual focus on motorcycles and commercial vehicles has positioned Eicher Motors as a versatile player in the Indian automotive industry.
How To Invest In Eicher Motors Ltd Share?
To invest in Eicher Motors Ltd shares, start by opening a demat account with Alice Blue. Complete the necessary KYC process and fund your account with the desired investment amount.
Research the company’s fundamentals, financial performance, and market trends before making an investment decision. Use the trading platform provided by the broker to place a buy order for Eicher Motors shares at your preferred price.
Monitor your investment regularly and stay informed about company news and market developments. Consider setting up a systematic investment plan (SIP) for long-term investing in the stock if it aligns with your financial goals.
Eicher Motors Limited Fundamental Analysis – FAQs
Fundamental analysis of Eicher Motors examines key financial metrics: Market Cap (₹128,120.47 crore), PE Ratio (32.02), Debt to Equity (2.32), and Return on Equity (24.22%). These indicators provide insights into the company’s financial health, market valuation, and overall performance in the automotive sector.
The market capitalization of Eicher Motors Ltd is ₹128,120.47 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
Eicher Motors Limited is an Indian automobile company primarily engaged in manufacturing and selling motorcycles and commercial vehicles. It operates the Royal Enfield motorcycle brand and has a joint venture, VE Commercial Vehicles, for its commercial vehicle business.
Eicher Motors is a public limited company and doesn’t have a single owner. The Lal family, particularly Siddhartha Lal, holds significant ownership and management roles. However, as a listed company, it has multiple shareholders including institutional investors, public shareholders, and promoter entities.
The main shareholders of Eicher Motors typically include the promoter group (Lal family), institutional investors (both domestic and foreign), mutual funds, and public shareholders. For the most current and accurate information on major shareholders, refer to the latest shareholding pattern disclosed by the company.
Eicher Motors operates in the automotive industry. The company specializes in manufacturing and selling motorcycles under the Royal Enfield brand and commercial vehicles through its joint venture VE Commercial Vehicles. It is a key player in the Indian two-wheeler and commercial vehicle segments.
To invest in Eicher Motors shares, open a demat account with Alice Blue. Complete the KYC process and fund your account. Research the company thoroughly, then use the trading platform to place a buy order for the desired number of shares at your preferred price.
Determining if Eicher Motors is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio, and PEG ratio, and compare them with industry peers and historical values for a balanced assessment.
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