Eicher Motors Ltd. share price target

Resurfaced chip availability concerns amid geopolitical issues Russia is the largest producer (~40% share in global production) of rare earth metal palladium, which is used in manufacturing of semiconductor. Further Ukraine is the largest producer of neon gas, which is another important component for semiconductor (chip) manufacturing. Therefore, any supply chain disruption of these critical raw materials in this space would impact the availability of chips, resulting in an adverse impact on OEM volumes and associated productivity. Rise in Brent crude to impact margins as well as demand...

Pick-up in economic activities, supreme performance of Royal Enfield in international market, wide distribution network, new product launches, improvement in availability of semiconductors and strategic cost management actions will drive company's performance in future. We hereby upgrade our rating on the stock to BUY with a rolled forward target price of Rs. 3,122 based on SOTP valuation. Strong export performance aids topline growth sequentially...

reiterated its aggressive stance towards new product launches with a strong product pipeline over next 18 months. New Classic 350 and Meteor are seeing good traction, though supply challenges impacted order fulfilment over last few months. Company has created an alternative source for chips and expect chip shortage issue to resolve in near term. We believe next leg of growth to come from new product launches and export market as we believe 1) key markets like Kerala and Chandigarh are saturated and 2) incessant price hikes are impacting vehicle affordability. We assign...

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The performance miss in EIM was led by lower realization and launch/event related marketing spends. With supply chain issues showing some signs of improvement, the management expects volume performance to be better...

For the quarter ending Dec 2021, consolidated net sales (including other operating income) of Eicher Motors has increased 1.85% to Rs 2880.65 crore compared to quarter ended Dec 2020. Operating profit margin has declined from 23.76% to 20.22%, leading to 13.34% decline in operating profit to Rs 582.36 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 56.98% to 53.19%. Purchase of finished goods cost rose from...

We maintain our HOLD rating on the stock with a revised TP of Rs 2,800/share (Rs 2,850 earlier), resulting in an upside of 9% from the current levels.

Availability of semiconductors is expected to improve in future with receding effect of pandemic and vaccination in full swing. Robust order book, sustained export demand and aggressive network expansion will drive the next phase of growth. CV industry is on a road to recovery with growth across sectors. However, we are cautious on the time to recovery and hence we downgrade our rating on the stock to HOLD with a revised target price of Rs. 2,190 based on SOTP valuation. Improved realization due to price hikes and higher exports...

crore as of 30 September 2021 from Rs 559.64 crore as of 30 September 2020. Sundry debtors were higher at Rs 190.54 crore as of 30 September 2021 compared to Rs 110.17 crore as of 30 September 2020. Cash and bank balance declined from Rs 5,632.29 crore as of 30 September...

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.