Sell

Eicher Motors’ (EIM) 2QFY25 operating performance was below our est. as margins contracted 90bp YoY to 25.5% mainly due to higher other expenses.

BJAUT’s Q2 results were marginally weak on lower ASPs. BJAUT’s 2W retail growth has been muted (FY25YTD: 6.7%; Sep-Oct: 5.7%).

BJAUT reported a steady Q1 (revenue/EBITDA up 16%/24% YoY; 20.2%
EBITDA margin, aided by 50bps accrual of PLI benefit). Domestic 2W prospects
are healthy, though BJAUT’s position has slipped now (also in the 125cc
motorcycle); response to newly-launched CNG motorcycle needs to be watched.

EIM’s results were in line with estimates; revenues/EBITDA/PAT were up
12%/21%/18% YoY with margins up 43bps QoQ to 26.5% on lower RM.

BJAUT reported strong performance that was in-line, with margins sustaining
QoQ at 20.1% (Emkay est.: 20.4%). Domestic 2W recovery continues apace,
even as revival in exports is expected to be slightly gradual.

BJAUT reported strong performance that was in-line, with margins sustaining
QoQ at 20.1% (Emkay est.: 20.4%). Domestic 2W recovery continues apace,
even as revival in exports is expected to be slightly gradual.

BJAUT: Spotless performance priced in by rich valuations. HDFCAMC: Another robust quarter but rich valuation caps upside. Metals & Mining: CRU meet takeaways: India steel to gain demand support in H2. Metals & Mining: China's steel industry needs structural readjustment: Valin Steel

Q3 revenue grew 30% YoY backed by healthy domestic 2W volume growth and revival in exports

We revise our rating from SELL to HOLD and upgrade our TP to Rs 2,850 (Rs 2,300 earlier), resulting in an upside of 7% from current levels.

Q1 revenue declined 35% QoQ on weak volumes (-40%). Lower operating efficiency further pulled down profitability

Commodity cost impact and margins: The commodity cost impact in 1QFY22 was offset by a favorable product mix, cost-saving initiatives, and product price hikes. During the quarter & subsequently beginning Q2'FY22 the company undertook a price hike of 1.1% in Apr'21 and 2.4% in Jul'21. The management is confident of normalizing EBITDA margins, and recovery in volumes...

Q1 revenue met our estimate but EBITDA margin fell short at 7% and adj. PAT declined 70% QoQ to Rs 833mn

BJAUT's Q1 revenue declined 14% QoQ on lower volumes (-14%) and flat ASP. High RM cost further pulled down profitability

We revise our rating from SELL to HOLD and upgrade our TP to Rs. 2,450 (Rs 2,350 earlier), resulting in a downside of 6% from current levels.

Eicher Motors (EIM) reported in-line Q4FY21 standalone revenue of Rs 29bn, a 22% EBITDA margin and adj. PAT of Rs 4.7bn.

Hero MotoCorp's (HMCL) Q4FY21 operating performance was marginally ahead of our estimates due to an above-expected gross margin.