BSE:505200

Stock Analysis Report

Executive Summary

Eicher Motors Limited manufactures and sells motorcycles and commercial vehicles in India and internationally.


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Eicher Motors's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 505200's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.3%

505200

-3.5%

IN Auto

-1.1%

IN Market


1 Year Return

-37.8%

505200

-45.3%

IN Auto

-31.7%

IN Market

Return vs Industry: 505200 exceeded the Indian Auto industry which returned -45.3% over the past year.

Return vs Market: 505200 underperformed the Indian Market which returned -31.7% over the past year.


Shareholder returns

505200IndustryMarket
7 Day-0.3%-3.5%-1.1%
30 Day-26.5%-34.3%-25.1%
90 Day-34.4%-43.1%-30.6%
1 Year-36.9%-37.8%-44.1%-45.3%-30.3%-31.7%
3 Year-48.3%-49.5%-50.6%-52.4%-20.1%-24.4%
5 Year-16.4%-18.7%-38.4%-41.3%-11.0%-15.7%

Price Volatility Vs. Market

How volatile is Eicher Motors's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Eicher Motors undervalued compared to its fair value and its price relative to the market?

17.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 505200 (₹13046.8) is trading above our estimate of fair value (₹12483.4)

Significantly Below Fair Value: 505200 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 505200 is poor value based on its PE Ratio (17.2x) compared to the Auto industry average (12.8x).

PE vs Market: 505200 is poor value based on its PE Ratio (17.2x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: 505200 is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: 505200 is overvalued based on its PB Ratio (3.7x) compared to the IN Auto industry average (1.6x).


Next Steps

Future Growth

How is Eicher Motors forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 505200's forecast earnings growth (11.9% per year) is above the savings rate (6.5%).

Earnings vs Market: 505200's earnings (11.9% per year) are forecast to grow slower than the Indian market (19.1% per year).

High Growth Earnings: 505200's earnings are forecast to grow, but not significantly.

Revenue vs Market: 505200's revenue (11.5% per year) is forecast to grow faster than the Indian market (8.8% per year).

High Growth Revenue: 505200's revenue (11.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 505200's Return on Equity is forecast to be low in 3 years time (19.7%).


Next Steps

Past Performance

How has Eicher Motors performed over the past 5 years?

22.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 505200 has high quality earnings.

Growing Profit Margin: 505200's current net profit margins (22%) are lower than last year (23.7%).


Past Earnings Growth Analysis

Earnings Trend: 505200's earnings have grown significantly by 22.6% per year over the past 5 years.

Accelerating Growth: 505200's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 505200 had negative earnings growth (-11%) over the past year, making it difficult to compare to the Auto industry average (0%).


Return on Equity

High ROE: 505200's Return on Equity (21.7%) is considered high.


Next Steps

Financial Health

How is Eicher Motors's financial position?


Financial Position Analysis

Short Term Liabilities: 505200's short term assets (₹44.8B) exceed its short term liabilities (₹20.7B).

Long Term Liabilities: 505200's short term assets (₹44.8B) exceed its long term liabilities (₹3.9B).


Debt to Equity History and Analysis

Debt Level: 505200's debt to equity ratio (1.7%) is considered satisfactory.

Reducing Debt: 505200's debt to equity ratio has increased from 1.6% to 1.7% over the past 5 years.

Debt Coverage: 505200's debt is well covered by operating cash flow (880.9%).

Interest Coverage: 505200 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Eicher Motors's current dividend yield, its reliability and sustainability?

0.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 505200's dividend (0.96%) is higher than the bottom 25% of dividend payers in the Indian market (0.96%).

High Dividend: 505200's dividend (0.96%) is low compared to the top 25% of dividend payers in the Indian market (4.06%).


Stability and Growth of Payments

Stable Dividend: 505200's dividends per share have been stable in the past 10 years.

Growing Dividend: 505200's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.5%), 505200's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 505200's dividends in 3 years are forecast to be well covered by earnings (17.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.4yrs

Average management tenure


CEO

Siddhartha Lal (46yo)

13.92s

Tenure

₹127,000,000

Compensation

Mr. Siddhartha Lal, PGDME, MSc (Automotive Engg.), has been Chief Executive Officer and Managing Director of Eicher Goodearth Pvt. Ltd. since May 1, 2006. He is Managing Director of Eicher Motors Limited s ...


CEO Compensation Analysis

Compensation vs Market: Siddhartha's total compensation ($USD1.67M) is above average for companies of similar size in the Indian market ($USD740.34K).

Compensation vs Earnings: Siddhartha's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Siddhartha Lal
MD & Executive Director13.92yrs₹127.00m1.08% 3.7b
Lalit Malik
CFO & Chief Commercial Officer of Royal Enfield9.5yrs₹47.50m0.020% 68.1m
Manhar Kapoor
Compliance Officerno data₹20.20m0.0026% 8.9m
R. Anbuselvan
Head of Aggregatesno datano datano data
Shaji Koshy
Head of Salesno data₹8.36mno data
Abhijit Brar
Head of Marketingno datano data0.0017% 5.7m
N. Krishnan
Head of Quality Assurance and Senior Vice President of Productno data₹8.83mno data
Ajay Khanna
Head of Information Technologyno datano datano data
B. Govindarajan
Chief Operating Officer of Royal Enfield7.25yrsno data0.018% 63.3m
Venkatesan Sambandam
Head of Procurement for Royal Enfield Unit6yrsno data0.0018% 6.3m

8.4yrs

Average Tenure

51yo

Average Age

Experienced Management: 505200's management team is seasoned and experienced (8.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Siddhartha Lal
MD & Executive Director13.92yrs₹127.00m1.08% 3.7b
Vinod Dasari
CEO of Royal Enfield & Whole Time Director1yrno datano data
Inder Singh
Non-Executive Independent Director1.42yrs₹541.00kno data
Srinivasan Sandilya
Non Executive Chairman13.92yrs₹6.17m0.043% 149.0m
Vinod Aggarwal
Non Executive Director1yr₹4.38mno data
Manvi Sinha
Non-Executive Independent Director5.17yrs₹1.43mno data

3.3yrs

Average Tenure

55yo

Average Age

Experienced Board: 505200's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 505200 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Eicher Motors Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eicher Motors Limited
  • Ticker: 505200
  • Exchange: BSE
  • Founded: 1948
  • Industry: Motorcycle Manufacturers
  • Sector: Automobiles
  • Market Cap: ₹345.854b
  • Shares outstanding: 27.30m
  • Website: https://www.eichermotors.com

Location

  • Eicher Motors Limited
  • #96, Sector 32
  • Gurugram
  • Haryana
  • 122001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
505200BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2000
EICHERMOTNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2000

Biography

Eicher Motors Limited manufactures and sells motorcycles and commercial vehicles in India and internationally. The company owns the Royal Enfield motorcycle brand that offers Bullet, Classic, Himalayan, Thunderbird, Interceptor 650, and Continental GT 650 models. It designs, develops, manufactures, assembles, and sells two-wheelers, as well as sells related parts and accessories. The company, through its joint venture, Volvo Eicher Commercial Vehicles Limited, also designs, manufactures, and markets light medium duty trucks, heavy duty trucks, and buses under the Eicher brand; Volvo trucks; and engineering components and aggregates. Eicher Motors Limited was founded in 1948 and is based in Gurugram, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 13:12
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.