Mehabe score: 4 G Factor: 4 Piotski Score: 5 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 5.
Description
Eicher Motors Limited, incorporated in 1982, is the listed company of the Eicher Group in India and a leading player in the Indian automobile industry and the global leader in middleweight motorcycles.
Eicher has a joint venture with Sweden’s AB Volvo to create Volvo Eicher Commercial Vehicles Limited (VECV). VECV is engaged in truck and bus operations, auto components business, and technical consulting services businessSite:EICHERMOTMain Symbol:EICHERMOT
Stock trades at 2522.0, below its 50dma 2743.79 and below its 200dma 2591.18. The stock remains bearish on technicals
The 52 week high is at 3037.00 and the 52week low is at 2015.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 22.88%
Weakness
– The company has delivered a poor sales growth of 7.15% over past five years.
Competition
– The industry trades at a mean P/E of 32.7x. Eicher Motors trades at the industry’s max P/E of 41.31x. EICHERMOT trades at a P/E of 41.3x
– Industry’s mean G-Factor is 3.7 while the mean Piotski score is 5.0. EICHERMOT has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 3.5%. The max 1- month return was given by TVS Motor Co.: a return of 26.06 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 2250.0 cr compared to Rs 2134.0 cr for period ended Sep 2020, a rise of 5.4%
Operating Profits reported at Rs 470.0 cr for period ended Sep 2021 vis-vis 467.0 for period ended Sep 2020 .
Operating Margins contracted -99.5 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 13.65 compared to Rs 8.67 for previous quarter ended Jun 2021 and Rs 12.57 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 9992.0 cr for period ended TTM vis-vis sales of Rs 8720.0 cr for the period ended Mar 2021, a healthy growth of 12.7%. The 3 year sales cagr stood at 0.7%.
Operating margins expanded to 21.0% for period ended TTM vis-vis 20.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 1669.0 cr for period ended TTM vis-vis sales of Rs 1347.0 cr for the period ended Mar 2021, rising 19.3%.
Company reported a poor Net Profit CAGR of -8.8% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 1714.0 cr for period ended Mar 2021 vis-vis Rs 1694.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 13.0% compared to 19.0% over the last 3 Years. – The stock has given a return of 20% on a 1 Year basis vis-vis a return of 4% over the last 3 Years. – The compounded sales growth on a TTM bassis is 33% vis-vis a compounded sales growth of -1% over the last 3 Years. – The compounded profit growth on a TTM basis is 53% vis-vis a compounded profit growth of -12% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 30.28% vis-vis 28.83% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 11.76% vis-vis 12.36% for Jun 2021
Conclusion
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 22.88% – The company has delivered a poor sales growth of 7.15% over past five years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains below its 50 DMA 2743.79 and is trading at 2522.0. Shows a near term lack of buying interest.
