ScoreWhy is Eicher Motors Ltd ?
1
Low Debt Company with Strong Long Term Fundamental Strength
- Healthy long term growth as Net Sales has grown by an annual rate of 20.41% and Operating profit at 25.66%
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 19.86% signifying high profitability per unit of shareholders funds
2
The company has declared Positive results for the last 4 consecutive quarters
- DEBTORS TURNOVER RATIO(HY) Highest at 65.00 times
- NET SALES(Q) Highest at Rs 6,632.42 cr
- PBDIT(Q) Highest at Rs 1,590.62 cr.
3
High Institutional Holdings at 41.59%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
4
Consistent Returns over the last 3 years
- Along with generating 40.65% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods
5
With its market cap of Rs 2,17,147 cr, it is the second biggest company in the sector (behind Bajaj Auto)and constitutes 23.31% of the entire sector
- Its annual Sales of Rs 24,998.14 are 11.81% of the industry
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Eicher Motors should be less than 10%
- Overall Portfolio exposure to Automobiles should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Eicher Motors for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Eicher Motors
40.65%
1.51
26.91%
Sensex
-2.64%
-0.19
13.57%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
20.41%
EBIT Growth (5y)
25.66%
EBIT to Interest (avg)
85.44
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.10
Sales to Capital Employed (avg)
0.90
Tax Ratio
22.35%
Dividend Payout Ratio
40.54%
Pledged Shares
0
Institutional Holding
41.59%
ROCE (avg)
21.23%
ROE (avg)
19.86%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
38
Industry P/E
32
Price to Book Value
8.74
EV to EBIT
41.26
EV to EBITDA
35.11
EV to Capital Employed
9.62
EV to Sales
8.67
PEG Ratio
1.88
Dividend Yield
1.03%
ROCE (Latest)
21.95%
ROE (Latest)
22.15%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 65.00 times
NET SALES(Q)
Highest at Rs 6,632.42 cr
PBDIT(Q)
Highest at Rs 1,590.62 cr.
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Eicher Motors
Net Sales - Quarterly
Highest at Rs 6,632.42 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 1,590.62 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Highest at 65.00 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Eicher Motors
Non Operating Income - Quarterly
Highest at Rs 466.31 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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