- 16th May 2017
- CMP: Rs 28,890
- Sector – Automotive
- Large Cap with Mkt Cap Rs 78,575 crores
- Advice: Investors can BUY now with a 2 year perspective
- Overview: Eicher Motors is an auto firm making commercial vehicles and two wheelers. The iconic Royal Enfield bikes business has been growing rapidly and they are selling as fast as they can be produced. The CVs business includes great technology from partners Volvo and Polaris of USA. Revenues, EBITDA and Net profits have grown at 28%, 53% and 45% CAGR over the last 7 years from 2009 through 2016.
- Why Buy Now: 1) The recent FY17 results confirmed another record year of all round growth and profitability 2) Capacity expansion plans for two wheelers funded by internal accruals could power a robust volume growth in 2 years 3) The so far underperforming CV business is now seeing improved traction and recovery.
- The main risks are international markets growth in bikes, and a continued recovery in CVs.
- This report on Eicher Motors was published for paying subscribers on 26th May, 2016 and is now being released for public viewing. It has given them 55.9% returns in the last one year. SIGN UP for the investment service subscription to gain exclusive access to such high quality investment reports.
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Notes and Disclaimers
This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. Punit Jain has a small personal shareholding (<1%) in EM as on May 2017. In addition, JM has no known financial interests in EM Motors or any related firm. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an independent expert/advisor. Punit Jain is a registered Research Analyst (SEBI Registration No. INH200002747) and compliant with SEBI (Research Analysts) Regulations, 2014. Any questions should be directed to the director of JainMatrix Investments at firstname.lastname@example.org.