Why 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 21.83% and Operating profit at 30.02%
- 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 3 consecutive quarters
- NET SALES(9M) At Rs 18,365.72 cr has Grown at 26.86%
- DEBTORS TURNOVER RATIO(HY) Highest at 65.00 times
- PBT LESS OI(Q) Highest at Rs 1,584.67 cr.
3
High Institutional Holdings at 41.6%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
4
Market Beating performance in long term as well as near term
- Along with generating 34.55% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
How 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
34.55%
1.33
26.00%
Sensex
-6.17%
-0.47
13.26%
Quality key factors
Factor
Value
Sales Growth (5y)
21.83%
EBIT Growth (5y)
30.02%
EBIT to Interest (avg)
82.29
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
22.34%
Dividend Payout Ratio
40.54%
Pledged Shares
0
Institutional Holding
41.60%
ROCE (avg)
21.23%
ROE (avg)
19.86%
Valuation Key Factors 
Factor
Value
P/E Ratio
37
Industry P/E
30
Price to Book Value
8.26
EV to EBIT
41.43
EV to EBITDA
35.41
EV to Capital Employed
9.09
EV to Sales
8.75
PEG Ratio
2.16
Dividend Yield
0.93%
ROCE (Latest)
21.95%
ROE (Latest)
22.15%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Bullish
Technical Movement
6What is working for the Company
NET SALES(9M)
At Rs 18,365.72 cr has Grown at 26.86%
DEBTORS TURNOVER RATIO(HY)
Highest at 65.00 times
PBT LESS OI(Q)
Highest at Rs 1,584.67 cr.
PAT(Q)
Highest at Rs 1,519.95 cr.
EPS(Q)
Highest at Rs 55.41
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Eicher Motors
Net Sales - Nine Monthly
At Rs 18,365.72 cr has Grown at 26.86%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 1,584.67 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 1,519.95 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 55.41
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
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






