The 41 reports from 12 analysts offering long term price targets
for Eicher Motors Ltd. have an average target of 2674.22. The consensus estimate
represents an upside of 7.03%
from the last price of 2498.60.
Consolidated revenue increased 19.5% YoY to Rs. 2,809cr in Q3FY21 (+33.0% QoQ), with increased sales volume. Launch of Classic' in 2009 was an Inflection point for Royal Enfield, with that volumes grew by 32.0% CAGR during the period CY2010 to FY2020. However market share in India marginally declined to 25.0% in 9MFY21 (vs. 25.6% in 9MFY20). As of December 31st 2020, company has 989 large size stores and 900 studios stores across 1,550 cities in India. The recently launched Meteor 350 fetch positive response and the management expect similar response for all-new classic 350. Margin contraction with surge in commodity prices...
EBITDA stood at Rs 672 crore in Q3 FY21, growing 13% as against Rs 592 crore in the same quarter of the previous financial year. Royal Enfield sold 1.99 lakh motorcycles in the quarter, registering an increase of 5% from 1.89 lakh motorcycles sold over the same period in FY 2019-20. To bolster its presence in international markets, Royal Enfield announced entry into Japan with its first standalone, flagship store in Tokyo. Located in Suginami-Tokyo, the newly inaugurated store will have the complete suite of Royal Enfield motorcycles, apparel and accessories, in addition to spares and service. In addition to this, 13 new exclusive stores were opened with focus on Latin American...
EML said (1) present production run rate of 75,000 units/month is pretty much sustainable, (2) demand is returning from mature markets like Tamil Nadu and Maharashtra (share of top 10, 20 cities has come back to 25% vs. ~27%, 30%, respectively, pre Covid), (3) RE waiting periods is coming down with higher production levels but supply concerns and commodity spike costs remain, (4) it took 2-3% price hikes in January-February while more are likely in the offing to counteract cost pressures, (5) it added 43 new large format stores and 129 studio stores in Q3FY21 along with 13 exclusive stores...
Product/network focus, new initiatives to drive performance Eicher Motors reported 3QFY21 standalone PAT at Rs4.9bn, flat YoY (down 0.1% YoY) and was ~2% below our estimate on higher-than-expected depreciation. Revenue stood at Rs28.04bn, up ~18.6% YoY but marginally below our estimate due to lower-than-expected YoY growth in ASP. ASP improved by 8.8% YoY but was flat QoQ due to an unfavourable mix even as RE took a BS-VI-related price increase in Sept'20. EBITDA margin declined by 170bps YoY to 23.5% on account of rise in input costs (impact of ~80-100bps) and salary costs, partially offset by tight fixed costs management and higher realisation on account of price hikes. To pass on the impact of higher commodity costs, RE took another price hike of 2-3% across models over Dec'20 and Jan'21. The company...
Domestic auto industry volumes have been on a steady mend in the months post lifting of lockdown restrictions. Manufacturing and distribution activities have been getting ramped up gradually since June 2020, in step with the rest of the economy. However, the impact of the pandemic on the supply chain continues to inhibit a complete return to production normalcy. Nevertheless, most automotive industry segments have reported successive improvement in offtake throughout June-November 2020 (Exhibit 1) on the back of (i) initial bounce provided by pent-up aspect,...
We expect export opportunities and new launches (Meteor 350) to drive growth over long-term. However, the stock has already factored-in the demand recovery at current price levels. Hence, we reiterate our HOLD...
EIM consol results exceeded our estimates as Revenue/EBITDA/PAT were higher by 4%/22%/10%. This was led by, 1) better margins at RE at 22% (PLe 18.7%, -260bp YoY) and VECV at 6.9% (PLe 5%, +150bp YoY). We expect ~50bp contraction in margins in 2H as higher RM cost will be partially diluted...
Series of model launches to bring in more footfalls RE's new model cycle would attract more customers towards showrooms as it plans to launch new Improvement in margins despite sales decline...
Series of model launches to bring in more footfalls RE's new model cycle would attract more customers towards showrooms as it plans to launch new Improvement in margins despite sales decline...
EML said (1) it has reached production levels of ~72,000 units in October. Present bookings are at ~1.25 lakh units including ~8,000 units for the new Meteor, (2) 90% of Meteor bookings are via the new Make It Yours (MIY) app and two-third of enquiries are now online, (3) will continue to introduce one new model each quarter, (4) it added 25 stores and 123 studio stores (studio store count 1,717). It also added six exclusive stores outside India (Cambodia, Costa Rica, Mexico, UK, Thailand), (5) RE ASPs were helped by favourable product mix and price hikes (| 3,000 in Bullet, | 2,000 in others)...
EIM's 2QFY21 performance has been strong, especially considering it was trailing in terms of volume recovery due to supply-side issues. Despite cost inflation (BS6 & precious metals), gross margins per unit were stable YoY. Strong booking and inquiries, positive initial response to Meteor, and normalized production would support volume recovery going forward. We upgrade FY21/FY22 consol. EPS estimates by 7%/8% as we upgrade volumes and realization for both RE and VECV. Maintain Buy....
We revise our rating from BUY to HOLD and upgrade our TP to Rs. 2,500 (Rs 2,400 earlier), valuing RE standalone business at 25x FY23E P/E (Rs 2,276) and VECV Business at 9x FY23E EV/EBITDA (Rs 224).
Eicher Motors reported 2QFY21 standalone PAT at Rs3.6bn, down by ~36.7% YoY mainly on account of lower EBITDA margin and other income and lower tax rate in the base quarter The bottomline was above Sector: Automobiles our estimate. Revenue stood at Rs21.23bn, down ~2.7% YoY due to a ~9.6% decline in volume. ASP improved by 7.6% YoY and 4.9% QoQ due to better mix and BS-VI related price increase in September (over CMP: Rs2,346 and above the price increase taken in April). EBITDA margin stood at 22.8% on account of negative Target Price: Rs2,398 operating leverage and higher BS-VI cost, partially offset by better product mix and higher realization on account of price hikes. The company opened 25 new stores and 133 studio stores during the quarter, taking Upside: 2.2% its total store count to 1,717 stores (including 771 studio stores). RE witnessed strong demand recovery...
Q2FY21 results were subdued due to lower volumes, but came in above estimates. Revenue was marginally lower by 3% yoy at Rs21.3bn (est.: Rs21.8bn). EBITDA margin contracted 260bps to 22.1%, but was better than expectation of 18.7%, owing to betterthan-expected gross margin and lower Other expenses. We expect 2W volumes to rebound strongly, aided by ramp-up in production, healthy order-book, aggressive launches and focus on network expansion. Volume CAGR is...
EIM consol results exceeded our estimates as Revenue/EBITDA/PAT were higher by 4%/22%/10%. This was led by, 1) better margins at RE at 22% (PLe 18.7%, -260bp YoY) and VECV at 6.9% (PLe 5%, +150bp YoY). We expect ~50bp contraction in margins in 2H as higher RM cost will be partially diluted...
Seminal year for industry provides interesting insights However, amid all the gloom, the engineering and production prowess of the industry (along with its value chain) shone brightly as it successfully completed the world's fastest switchover to Euro 6 equivalent emission norms i.e. BS-VI as per schedule. Much of the post festive period was focused on the transition, with the entire ecosystem estimated to have spent ~| 70,000 crore towards the technological leap. Covid-19 crisis struck India in the run up to April 2020, just as the changeover...
We are initiating coverage on Eicher Motors Ltd (Eicher) with a HOLD recommendation and a Target Price of Rs 2,400, which implies ~7% upside from the current levels
