Eicher Motors Ltd. share price target

Consolidated revenue grew 23.7% YoY to ~INR22.7b (est. ofINR22.1b), with EBITDA growth of 23% YoY to INR7.1b (est. of INR6.9b). However, higher depreciation and lower other income restricted PAT to INR5.2b (+25% YoY;est. of INR5.5b) . RE's net realization improved 2 .8% QoQ (+3.9% YoY) to ~INR109.6k (est. ofINR106.9). EBITDA margin contracted ~20bp QoQ (flat YoY) to 31.7%,higher than our estimate of 31.2% due to lower RM cost (despite commodity pressures) on efficiency gains. PAT grew 14% YoY to INR4.7b. VECV's realizations grew 2.4% QoQ (flat YoY) to INR1.6m (est. ofINR1.57m). EBITDA margin expanded 180bp YoY (-5 0bp QoQ) to 8.7% (est.of 9.4%), led by efficiency gains and operating leverage. PAT grew 134% YoY to INR1.3b (est. of INR1.4m).

Eicher Motors' (EIM) Q2FY18 results were in line. The story of strong volume growth (as capacity ramp-up mirrors global expansion) and margin expansion (as spares/accessories ramp up) remains intact. The key monitorable is how order book (1.52 months currently) trends going into the recent capa..

ICICI Securities Ltd | Retail Equity Research Eicher Motors reported its Q2FY18 numbers that were operationally above estimates. Revenues for Q2FY18 came in at | 2167 crore (up 23.2% YoY, 8.3% QoQ), below our estimates of | 2208.2 crore. The miss on revenues is due to lower than estimated ASPs in RE business. The Royal Enfield (RE) volumes grew strongly at 21.7% YoY to 202744 units, VECV volumes were up 13% to 15017 units EBITDA came in at | 683 crore (up 24.7% YoY, 10% QoQ) against our...

performance in-line; RE margins stable; VECV margin beats estimate Consol. revenue grew ~23.5% YoY to ~INR21.7b (est. of INR22.1b), with EBITDA growth of 26% YoY to INR6.8b (est. of INR7b). However, higher tax restricted consol. PAT to INR5.2b (est. of INR5.5b) growth of 25%. RE's net realization declined 2% QoQ (+1% YoY) to ~INR106.7k (est. of INR108.8) due to pass-through of input tax credit. EBITDA margin expanded ~50 QoQ (+60bp YoY) to 31.9% (est. of 31.7%), led by lower RM cost (despite commodity pressures) due to efficiency gains. PAT grew 23% YoY to INR4.9b....

performance in-line; RE margins stable; VECV margin beats estimate Consol. revenue grew ~23.5% YoY to ~INR21.7b (est. of INR22.1b), with EBITDA growth of 26% YoY to INR6.8b (est. of INR7b). However, higher tax restricted consol. PAT to INR5.2b (est. of INR5.5b) growth of 25%. RE's net realization declined 2% QoQ (+1% YoY) to ~INR106.7k (est. of INR108.8) due to pass-through of input tax credit. EBITDA margin expanded ~50 QoQ (+60bp YoY) to 31.9% (est. of 31.7%), led by lower RM cost (despite commodity pressures) due to efficiency gains. PAT grew 23% YoY to INR4.9b....

Q1FY18 results were largely in line. The story of strong volume growth (as capacity ramp-up mirrors expansion plans in India and overseas) and margin expansion (as spares/accessories ramps up) remains intact.

Maintain BUY with a SOTP-based TP of Rs 35,809 (RE at 30x core Jun-19E EPS, VECV 9x EV/EBITDA on Jun-19E and 1.5x BV for Eicher-Polaris). Eicher Motors (EIM) reported a healthy consolidated performance in Q1FY18, inline with expectations. Revenue growth was up 28.6% YoY at Rs 20bn, and the EBITDA margin came in at 31% (+80bps YoY). Strong demand for RE (waiting period stable at 2 months for Classic 350) and expansion of its network will help rampup capacity utilisation in the upcoming facility in FY18.

Eicher Motors Ltd. (EML) is a leading player in the Indian automotive industry with 95% market share in midsize motorcycles (250cc-750cc) segment. The company operates in three business verticals - motorcycles, commercial vehicles and personal utility vehicles. EML has reported robust 62% volume CAGR during CY10-FY17 in its 2 wheeler segment.

Revenue rose by 2.64% to Rs. 1876.54 Cr in Q4FY17 when compared to the previous quarter.

Q4 results were largely in line. The main takeaway from the call was a sharp capacity ramp-up to meet expansion plans in India and overseas.