BSE:505200

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.

Risks

  • Eicher Motors has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-5.6%

BSE:505200

-1.5%

IN Auto

-0.7%

IN Market


1 Year Return

-41.9%

BSE:505200

-32.9%

IN Auto

-12.1%

IN Market

505200 underperformed the Auto industry which returned -33% over the past year.

505200 underperformed the Market in India which returned -12.1% over the past year.


Share holder returns

505200IndustryMarket
7 Day-5.6%-1.5%-0.7%
30 Day-9.8%-3.5%-4.6%
90 Day-20.8%-13.4%-4.3%
1 Year-41.5%-41.9%-31.9%-32.9%-10.3%-12.1%
3 Year-22.6%-23.8%-19.9%-22.5%18.9%12.8%
5 Year69.9%66.0%6.1%1.0%37.6%24.7%

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 based on future cash flows and its price relative to the stock market?

21.59x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Eicher Motors's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Eicher Motors's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Eicher Motors is overvalued based on earnings compared to the IN Auto industry average.

Eicher Motors is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Eicher Motors is poor value based on expected growth next year.


Price Based on Value of Assets

Eicher Motors is overvalued based on assets compared to the IN Auto industry average.


Next Steps

Future Growth

How is Eicher Motors expected to perform in the next 1 to 3 years based on estimates from 28 analysts?

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Eicher Motors's revenue is expected to grow by 11.8% yearly, however this is not considered high growth (20% yearly).

Eicher Motors's earnings are expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).

Eicher Motors's revenue growth is expected to exceed the India market average.

Eicher Motors's earnings growth is positive but not above the India market average.

Eicher Motors's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Eicher Motors is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Eicher Motors performed over the past 5 years?

28.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Eicher Motors has delivered over 20% year on year earnings growth in the past 5 years.

Eicher Motors's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Eicher Motors's 1-year earnings growth is negative, it can't be compared to the IN Auto industry average.


Return on Equity

Eicher Motors has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Eicher Motors used its assets more efficiently than the IN Auto industry average last year based on Return on Assets.


Return on Capital Employed

Eicher Motors's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Eicher Motors's financial position?


Financial Position Analysis

Eicher Motors is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Eicher Motors's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Eicher Motors's level of debt (2.1%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (1.9% vs 2.1% today).

Debt is well covered by operating cash flow (842.2%, greater than 20% of total debt).

Eicher Motors earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 23.6x debt.


Next Steps

Dividend

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

0.86%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Eicher Motors's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.63%).

Eicher Motors's dividend is below the markets top 25% of dividend payers in India (2.52%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (6.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (5.8x coverage).


Next Steps

Management

What is the CEO of Eicher Motors's salary, the management and board of directors tenure and is there insider trading?

7.7yrs

Average management tenure


CEO

Siddhartha Lal (46yo)

13.3yrs

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

Siddhartha's remuneration is higher than average for companies of similar size in India.

Siddhartha's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

7.7yrs

Average Tenure

51yo

Average Age

The average tenure for the Eicher Motors management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

2.6yrs

Average Tenure

55yo

Average Age

The average tenure for the Eicher Motors board of directors is less than 3 years, this suggests a new board.


Insider Trading

Eicher Motors individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹3,881,75028 Jun 19
N. Kumar
EntityIndividual
Shares200
Max Price₹19,408.75
Sell₹5,926,09719 Jun 19
A. Mathew
EntityIndividual
Shares300
Max Price₹19,807.00
Sell₹2,908,80018 Jun 19
V. Jayapradeep
EntityIndividual
Shares144
Max Price₹20,200.00
Sell₹11,051,42014 Jun 19
Abhijit Brar
EntityIndividual
Role
Head of Marketing
Shares550
Max Price₹20,093.49
Sell₹3,469,33114 Jun 19
Sudhakar Bhagavatula
EntityIndividual
Shares175
Max Price₹19,824.75
Sell₹2,010,00011 Jun 19
N. Chockalingam
EntityIndividual
Shares100
Max Price₹20,100.00
Sell₹1,003,99610 Jun 19
N. Kumar
EntityIndividual
Shares50
Max Price₹20,079.93
Sell₹1,626,22010 Jun 19
A. Mathew
EntityIndividual
Shares80
Max Price₹20,327.75
Sell₹2,013,19006 Jun 19
Abhijit Brar
EntityIndividual
Role
Head of Marketing
Shares100
Max Price₹20,131.90
Sell₹2,010,00005 Jun 19
Sudhakar Bhagavatula
EntityIndividual
Shares100
Max Price₹20,100.00
Sell₹4,008,02315 Mar 19
Samrat Som
EntityIndividual
Shares50
Max Price₹80,160.46
Sell₹7,459,24213 Mar 19
R. Ravichandran
EntityIndividual
Shares329
Max Price₹22,672.47
Sell₹4,456,37413 Mar 19
Samrat Som
EntityIndividual
Shares195
Max Price₹22,902.99
Sell₹1,115,37813 Mar 19
Sudhakar Bhagavatula
EntityIndividual
Shares50
Max Price₹22,307.56
Sell₹2,376,44212 Mar 19
Samrat Som
EntityIndividual
Shares110
Max Price₹21,878.65
Sell₹1,085,76612 Mar 19
Sudhakar Bhagavatula
EntityIndividual
Shares50
Max Price₹21,715.32
Sell₹6,675,41012 Mar 19
R. Ravichandran
EntityIndividual
Shares306
Max Price₹21,817.00
Sell₹7,973,89807 Mar 19
R. Ravichandran
EntityIndividual
Shares365
Max Price₹24,341.00
Sell₹2,138,40007 Mar 19
Sudhakar Bhagavatula
EntityIndividual
Shares100
Max Price₹21,384.00
Sell₹8,744,30807 Mar 19
Rudratej Singh
EntityIndividual
Shares417
Max Price₹20,969.56
Sell₹514,19501 Mar 19
R. Ravichandran
EntityIndividual
Shares25
Max Price₹20,567.80
Sell₹2,078,39326 Feb 19
Samrat Som
EntityIndividual
Shares100
Max Price₹20,800.22
Sell₹89,973,84726 Feb 19
Rudratej Singh
EntityIndividual
Shares4,408
Max Price₹20,411.49
Sell₹2,067,63926 Feb 19
Sudhakar Bhagavatula
EntityIndividual
Shares100
Max Price₹20,676.39
Sell₹4,056,81622 Feb 19
Sudhakar Bhagavatula
EntityIndividual
Shares200
Max Price₹20,284.08
Sell₹2,016,69619 Feb 19
N. Kumar
EntityIndividual
Shares100
Max Price₹20,166.96
Sell₹9,038,59818 Feb 19
R. Ravichandran
EntityIndividual
Shares450
Max Price₹20,085.77
Sell₹1,003,50015 Feb 19
A. Anand
EntityIndividual
Shares50
Max Price₹20,070.00
Sell₹1,003,25414 Feb 19
A. Anand
EntityIndividual
Shares50
Max Price₹20,065.08
Sell₹10,265,12017 Jan 19
Rodney Copes
EntityIndividual
Shares500
Max Price₹20,530.24
Sell₹1,024,72714 Jan 19
N. Kumar
EntityIndividual
Shares50
Max Price₹20,494.54
Sell₹1,019,60214 Jan 19
T. Lakshmipathy
EntityIndividual
Shares50
Max Price₹20,392.04
Sell₹4,040,00011 Jan 19
Dinesh Taneja
EntityIndividual
Shares200
Max Price₹20,200.00
Sell₹5,078,10010 Jan 19
T. Lakshmipathy
EntityIndividual
Shares250
Max Price₹20,312.40
Sell₹8,120,00004 Jan 19
Rajendra Sachdeva
EntityIndividual
Shares400
Max Price₹20,300.00
Sell₹13,495,00002 Jan 19
Rajendra Sachdeva
EntityIndividual
Shares600
Max Price₹22,491.67
Sell₹23,280,05002 Jan 19
Shaji Koshy
EntityIndividual
Role
Head of Sales
Shares1,000
Max Price₹23,280.05
Sell₹2,402,07526 Dec 18
R. Ravichandran
EntityIndividual
Shares100
Max Price₹24,020.75
Sell₹4,814,62821 Dec 18
R. Ravichandran
EntityIndividual
Shares200
Max Price₹24,073.14
Sell₹1,186,64514 Dec 18
Sudhakar Bhagavatula
EntityIndividual
Shares50
Max Price₹23,732.90
Sell₹2,917,32513 Dec 18
Sudhakar Bhagavatula
EntityIndividual
Shares130
Max Price₹22,440.96
Sell₹7,056,04203 Dec 18
Rajeev Sharma
EntityIndividual
Shares300
Max Price₹23,520.14
Sell₹2,463,60019 Nov 18
Venkatesan Sambandam
EntityIndividual
Role
Head of Procurement for Royal Enfield Unit
Shares100
Max Price₹24,636.00
Sell₹6,137,81919 Nov 18
Sudhakar Bhagavatula
EntityIndividual
Shares260
Max Price₹23,607.00
Sell₹4,789,00016 Nov 18
Venkatesan Sambandam
EntityIndividual
Role
Head of Procurement for Royal Enfield Unit
Shares200
Max Price₹23,945.00
Sell₹63,202,35616 Oct 18
Lalit Malik
EntityIndividual
Role
CFO & Chief Commercial Officer of Royal Enfield
Shares2,715
Max Price₹23,278.95
Sell₹1,269,98216 Oct 18
R. Ravichandran
EntityIndividual
Shares53
Max Price₹23,961.92
Sell₹3,631,90915 Oct 18
R. Ravichandran
EntityIndividual
Shares151
Max Price₹24,052.38
Sell₹11,699,84908 Oct 18
Sudhakar Bhagavatula
EntityIndividual
Shares570
Max Price₹20,526.05
Sell₹4,440,61520 Sep 18
R. Ravichandran
EntityIndividual
Shares150
Max Price₹29,604.10
Sell₹1,188,00020 Sep 18
G. Kumar
EntityIndividual
Shares40
Max Price₹29,700.00
Sell₹11,136,00014 Sep 18
Rajendra Sachdeva
EntityIndividual
Shares384
Max Price₹29,000.00
Sell₹28,938,63205 Sep 18
Sachin Chavan
EntityIndividual
Shares1,000
Max Price₹28,938.63
Sell₹2,798,47104 Sep 18
Anuj Bansal
EntityIndividual
Shares100
Max Price₹27,984.71
Sell₹4,818,14229 Aug 18
Anuj Bansal
EntityIndividual
Shares167
Max Price₹28,851.15

Ownership Breakdown


Management Team

  • N. Krishnan (59yo)

    Head of Quality Assurance and Senior Vice President of Product

    • Compensation: 8.83m
  • Siddhartha Lal (46yo)

    MD & Executive Director

    • Tenure: 13.3yrs
    • Compensation: 127.00m
  • Manhar Kapoor (40yo)

    Compliance Officer

    • Compensation: 20.20m
  • Lalit Malik (51yo)

    CFO & Chief Commercial Officer of Royal Enfield

    • Tenure: 8.8yrs
    • Compensation: 47.50m
  • Shaji Koshy (58yo)

    Head of Sales

    • Compensation: 8.36m
  • Ajay Khanna

    Head of Information Technology

  • Venkatesan Sambandam (57yo)

    Head of Procurement for Royal Enfield Unit

    • Tenure: 5.3yrs
  • Abhijit Brar (40yo)

    Head of Marketing

  • R. Anbuselvan (59yo)

    Head of Aggregates

  • B. Govindarajan (50yo)

    Chief Operating Officer of Royal Enfield

    • Tenure: 6.6yrs

Board Members

  • Vinod Dasari (53yo)

    CEO of Royal Enfield & Whole Time Director

    • Tenure: 0.3yrs
  • Siddhartha Lal (46yo)

    MD & Executive Director

    • Tenure: 13.3yrs
    • Compensation: 127.00m
  • Inder Singh (55yo)

    Additional Non-Executive Independent Director

    • Tenure: 0.8yrs
    • Compensation: 541.00k
  • Srinivasan Sandilya (71yo)

    Non Executive Chairman

    • Tenure: 13.3yrs
    • Compensation: 6.17m
  • Vinod Aggarwal (60yo)

    Non Executive Director

    • Tenure: 0.3yrs
    • Compensation: 4.38m
  • Manvi Sinha

    Non-Executive Independent Director

    • Tenure: 4.5yrs
    • Compensation: 1.43m

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: ₹452.717b
  • Shares outstanding: 27.29m
  • Website: Click here

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, Th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 12:40
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
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.