$1.22 to $3,207: Bluechip stock goes from $1 to $26.28 Cr in 23 years

Eicher Motors stock price history

Shares of Eicher Motors Ltd. Trading on Friday at R3,207.00 per share, up 0.96% from the previous close of R3,176.45. The share price increased from Rs. 1.22 on January 1, 1999, to where it is now, a multi-marked return and an all-time high of 262.768.85%. Thus, if the investor has invested R1 lakh in Eicher Motors stock from 23 years ago, its value would be R26.28 s. The stock has gained 1.77% over the past five years and is up 28.49% over the past year. On a year-to-date basis, the stock is up 17.96% so far in 2022. On the New York Stock Exchange, the stock touched a 52-week high. R3,265.95 on 11-Aug-2022 and a 52-week low at R2,159.55 on March 08-2022 indicating that at the current market price the stock is trading 48.50% above the 52-week low.

Eicher Motors Q1FY23 results

Eicher Motors Limited reported total revenue from operations of Rs. 3,397 crore for the quarter ended June 30, 2022, a growth of 72% from Rs. 1,974 crore in the same quarter of the 2021-2022 financial year. EBITDA increased by 128% YoY to Rs. 831 crores. 363 crores in the same quarter of the previous financial year. Profit After Taxes (PAT) increased by 157% YoY to Rs. 611 crores. 237 crores during the same period last year. Compared to 122,170 bikes sold during the same period in the 2021-2022 fiscal year, Royal Enfield sold 186,032 motorcycles in the first quarter of fiscal year 23, an increase of 52%.

Commenting on the company’s performance in the first quarter of fiscal year 23, Siddhartha Lal, Managing Director of Eicher Motors Ltd. We had an excellent quarter to start this fiscal year, our international volumes continued to post steady growth with an increase of more than 60% over the prior year. We recorded the highest quarterly revenue and EBITDA on the back of record international sales volumes. Exciting new roadster with a new design, the Hunter 350. We have just concluded the global launch and first ride program in Bangkok with the world’s top press. There was tremendous energy and a very enthusiastic response to the motorcycle. We are confident that Hunter will usher in new audiences and new geographies in Brand hangar. VECV, a commercial vehicle joint venture with Volvo Group, recorded its highest volumes in the first quarter ever. The quarter also saw the opening of the first electric city bus delivered to Chandigarh.”

Commenting on Royal Enfield’s performance, B. Figures from our international markets. We recently launched Hunter 350 to a great reception from Indian and global audiences. When we start retailing in India, we are confident that the Hunter 350 will open up a new market for us, thus bringing new customers to Royal Enfield. With products like the Scram 411 and Hunter 350, we’re building updated formats for the pure motorcycle riding experience. With the upcoming holiday season, a slight uptick in market and consumer sentiment, and an improvement in supply chain and partial availability, we are confident of the continued and sustainable growth of Royal Enfield in the coming quarters.”

Commenting on the performance of Volvo Escher Commercial Vehicles Limited (VECV), Vinod Agarwal, Managing Director and CEO of VECV, said: “With the Indian commercial vehicle market on a recovery path backed by government spending in infrastructure and pent-up fleet replacement, there are huge opportunities in the market. It is encouraging to note that we are developing well across all segments with a customer focused approach, expanding our distribution network, and expanding our product range. Margins remained under pressure in the quarter due to higher inflation in a competitive market.”

Should You Buy Eicher Motors Stock?

Brokerage firm Motilal Oswal said in a note that “consolidated earnings per share will grow at a 46% compound annual growth rate (CAGR) through fiscal year 22-24; keep buying: We increased consolidated earnings per share for fiscal year 23E/FY24E by 3%/5% to reflect price easing. Commodity and operating leverage An improved supply side, new product launches, and increased exports will drive the next phase of renewable energy growth.This along with stable commodity prices will support margins and drive earnings growth.The stock is trading at 28.9x/20.9x FY23E/FY24E Consolidated EPS. Maintain buy rating with TP of INR 3,600/share (September 24E SoTP).

Research analysts at ICICI Securities said, “EML’s stock price has been largely flat over the past five years amid a muted volume trajectory, underperforming the broader Nifty Auto benchmark. We are upgrading EML from HOLD to BUY amid affordable offerings in the premium segment. (Hunter 350) thus supporting volume growth during FY 22-24E. We value EML in R3650 based on SOTP; Set 30x PE for RE business and 30x PE for VECV business on fiscal year 24E numbers. “

With attractive prices for Hunter 350 (lowest price offered by RE at R1.5 lakh/unit, ex-showroom), network optimization and global presence increase, we expect RE volumes to grow at a compound annual growth rate of 22% during FY 22-24E, with CV cyclically rising locally, CV volumes expected to grow In VECV at a compound annual growth rate of 21% FY22-24E amid market share gains, overall on a consolidated basis, we expect net sales to grow at a compound annual growth rate of 22.1%. With operating leverage gains and stable input costs, margins are expected to improve to 26.1% with the resulting RoCE positioned at approximately 21% by fiscal year 24E and net cash remains positive with positive CFO generation, which are the main catalysts for the stock’s future price performance according to research analysts. In ICICI Securities.

Research analysts at brokerage Prabhudas Lilladher said: “Eicher turned out a positive surprise with a consolidated EBITDA margin of 24.5% (+80 basis points quarterly) versus our estimate of 23.2%. RE recently launched Hunter 350, which is expected to attract new clients due to for its attractive pricing (~ R1.5 lakhs for factory model) and differentiated product offerings (lightweight, non-cruiser, urban fit). It delivered the highest-ever quarterly exports of around 29,000 units in the first quarter of FY23 (versus 25,000 in the fourth quarter of FY22). We expect our export business to see significant growth over the next few years (we are building a 30% CAGR over FY22-24) led by channel expansion and market share gains. With a new model launch underway, commodity cost moderation and chip supply stabilization, we expect the operational leverage to kick in. In VECV, demand continues to emerge led by the cyclical recovery.”

“We maintain buying on Eicher Motors as we expect (i) volume growth from new product launches (ii) export volume increase from channel expansion and market share gains and (iii) margin expansion as operating leverage starts (we build ~380bps EBITDAM expansion during the year Financials 22-24e) We have increased our earnings per share estimate by 2/5% for FY 23/24 and set a revised final TP based on SoTP. RPrabhudas Lilladher research analysts said 3,400 (28 times the FY 24E EPS for independent business versus 27 times earlier for the positive outlook and 18 times for the VECV).

Disclaimer: The opinions and recommendations above are those of individual analysts or brokerages and are not issued by the mint.

Find out all the business news, market news, breaking news events and the latest news updates on the Live Mint. Download the Mint News app for daily market updates.

more less

participation in Mint newsletters

* Enter an available email

* Thank you for subscribing to our newsletter.

Leave a Comment