Eicher Motors Ltd. share price target

Eicher Motors (EML) numbers were in line with expectations at revenue and operating level. Numbers at net level were low due to a one time write off `1.9bn (due to closure of Eicher Polaris business). With RE segment focusing on capacity augmentation as well as new product launches, growth trajectory should remain strong. Realizations improvement shows the pricing power with expansion of gross margins on per unit basis. With strong CV volume cycle, we expect VECV to gain traction. Export market potential is the focus area and should playout in next few years. We rollover valuation...

Eicher Motors reported a consolidated net profit of Rs 461.5 core for the fourth quarter ended March 2018, roughly similar compared to the same quarter last year as a loss in a joint venture eroded the bottom-line for the quarter. Net profit in Q4FY17 was Rs 459.44 crore. Consolidated revenue for the quarter grew 34% at Rs 2,528 crore. Consolidated revenue for the...

Eicher Motors reported its Q4FY18 numbers that were marginally below estimates on the profitability front. Revenues for Q4FY18 came in at | 2528 crore (up 33.9% YoY, 11.4% QoQ), almost in line with our estimates of | 2523 crore. The Royal Enfield (RE) volumes...

Royal Enfield's (RE) 4QFY18 results were above our and consensus estimates. Revenue grew +35% YoY / +12% QoQ to Rs25.1bn driven by strong volume growth of +27% YoY / +10% QoQ to 227,042 units. Net realization for the quarter increased 2% QoQ to Rs111k. EBITDA for the quarter increased +38% YoY / +14% QoQ to at Rs8.1bn. Other expenses grew +38% YoY / +14% QoQ to Rs2.7bn mainly on account of business development. EBITDA margin for the quarter stood at 32.3% vs our and consensus estimates of 32% respectively. Adj. PAT for the quarter stood at Rs2.6bn (-37%YoY/-45%QoQ) as company has made impairment loss of Rs3.1bn for...

Revenue increased by 11.85% to Rs. 2517.29 Cr in Q4FY18 when compared to the previous quarter. Eicher Motors Ltd Q4FY18 results Comment

Consol. revenue grew 33.9% YoY to ~INR25.3b (est. of INR24.8b), with EBITDA growth of 36% YoY to INR8b (est. of INR8.2b). Exceptional it empertains to a loss from discontinuing operations (Eicher Polaris) of INR1.9b.Higher tax resulted in below-estimated adj. PAT of INR6.5b (+39% YoY). RE's net realization improved 4.9% QoQ (+8.7% YoY) to ~INR115k (est. ofINR113.3k). EBITDA margin expanded ~60bp QoQ (90bp YoY) to 32.3% (est.of 32%) due to operating leverage. Adj. PAT was flat YoY at INR4.1b (est. ofINR5.2b).

ICICI Securities Ltd | Retail Equity Research The board of directors of Eicher Polaris Private (EPPL), an equal joint venture between Eicher Motors (EML) & US-based Polaris Industries Inc, passed a resolution to close the operations of EPPL with immediate effect. EPPL was incorporated in October 2012, and in June 2015, the company launched Multix a personal utility vehicle. As of 31st December 2017, EML had invested |289.5 crore in EPPL and the same shall be written down in accordance with the applicable regulations....

Royal Enfield sales volumes increased 18.8% yoy to 2,06,000 units, aided by additional capacity and good demand while commercial vehicle volumes grew 37.7% yoy to 16,231 units. The company's margins registered a drop due to increased employee and other cost (all items as a % to sales, net of stock) during Q3 FY 17-18. The raw material cost as % of sales net of stock adjustments fell 80bps to 49.9%. The employee cost (as a % of sales, net of stock) increased 15bps to 5.98%. Other expense (as a % of sales, net of stock) increased to 11.5% as...

ICICI Securities Ltd | Retail Equity Research Eicher Motors reported its Q3FY18 numbers that were in line with estimates on the operational front but below estimates on the profitability front. Revenues for Q3FY18 came in at | 2269 crore (up 23.7% YoY, 4.7% QoQ), above our estimate of | 2227 crore. The beat on revenues is due to higher than estimated ASPs in RE business. The Royal Enfield (RE) volumes grew strongly at 18.9% YoY to 206,736 units while VECV volumes were up 12.2% to 16,231 units...

Eicher Motors reported steady Q3FY18 result with Consolidated Revenue and Net profit growth of 23.7% and 24.5% yoy respectively. The company sold 206,726 units of RE in Q3FY18, up 19.8% yoy. Also the performance of its JV with Volvo group (VE commercial vehicles) reported healthy growth with total volumes up 12.2% yoy and improvement in profitability.