Eicher Motors Ltd

About [ edit ]

Eicher Motors Limited, incorporated in 1982, is the listed company of the Eicher Group in India and a leading player in the Indian automobile industry and the global leader in middleweight motorcycles.
Eicher has a joint venture with Sweden’s AB Volvo to create Volvo Eicher Commercial Vehicles Limited (VECV). VECV is engaged in truck and bus operations, auto components business, and technical consulting services business ^#

Key Points [ edit ]

Iconic Brand
It is the owner of the iconic Royal Enfield brand which is focused on mid-sized motorcycles (250-750 cc). Classic, Bullet, Himalayan are some of the brands that come under its Royal Enfield brand. It is sold in 60+ countries globally. It also provides protective riding apparel, urban casual wear, and Motorcycle accessories.

It has launched two BS-VI Compliant Motorcycles, i.e. Classic 350 BS-VI and Himalayan BS-VI in FY20^#

Commercial Vehicle segment
Its VECV segment makes- light & medium-duty trucks, heavy-duty trucks and buses, engineering components, and aggregates. It is also the manufacturer of medium-duty base engines for Euro VI requirements of the Volvo Group^#
It has launched India’s first BS-VI compliant CV range in FY20^#

Manufacturing Facility
It has 3 Manufacturing Facility around Chennai. ^#
Its VECV’s manufacturing plant in Pithampur, Madhya Pradesh produces medium-duty five- and eight-liter engines. ^#
Its VE PowerTrain plant is the first engine plant in India to produce a Euro-6 compliant base engine^#
A new body shop for Pro 2000 and Pro 8000 trucks has been commissioned and installed. ^#

Capacity expansion
Its Pithampur Plant has the capacity to produce ~90,000 trucks per annum ^#
Its Phase 1 capacity expansion for the Bhopal plant is 40k vehicles per annum ^#
Its VE PowerTrain plant current capacity is 50,000 engines, scalable up to 100,000 engines ^#

Distribution
It has 1889 dealers (989 stores and 900 studio stores) across 1,550 cities. Its network has grown 3 times in the last 5 years. They are planning to add 600 stores during FY21. ^#
It has 308 dealers, 27 distributors for its Bus Segment^#
It has added 35 new stores across international markets in FY19-20, increasing its overall touchpoints to over 660 stores including 77 exclusive stores and 585 multi-brand outlets.^#

Market Share
Mid-size Motorcycles segment: >95% in FY20
VE Commercial Vehicles market share in domestic LMD segment: 29.5% in FY20^#
Above 125cc segment: 26.6% in FY20 ^#
Commercial Vehicle: 14.6% in FY20 ^#
Overall Motorcycle segment: 6% ^#
Eicher HD Trucks Market Share: 5.1% in FY20 ^#

Revenue Mix
Domestic: 91% In FY20
International: 9.1% in FY20 which was 2.8% in FY16 ^#

Product-wise Revenue
Two-wheelers: 88% of Revenue
Spare parts and other components: 7% of Revenue
Accessories and other allied products: 5% of Revenue ^#

R&D
It has 2 technology centers, one each at Leicestershire, UK and Chennai, India ^#

Website BSE NSE

Market Cap ₹ 68,298 Cr.
Current Price ₹ 2,499
High / Low ₹ 3,037 / 1,245
Stock P/E 60.7
Book Value ₹ 378
Dividend Yield 0.50 %
ROCE 24.6 %
ROE 19.4 %
Face Value ₹ 1.00

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Pros

Company is almost debt free.
Company has a good return on equity (ROE) track record: 3 Years ROE 25.38%

Cons

The company has delivered a poor sales growth of 0.93% over past five years.
Earnings include an other income of Rs.513.75 Cr.

Peer comparison

Sector: Automobile Industry: Automobiles - Motorcycles / Mopeds

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Detailed Comparison with:

Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

	Mar 2018	Jun 2018	Sep 2018	Dec 2018	Mar 2019	Jun 2019	Sep 2019	Dec 2019	Mar 2020	Jun 2020	Sep 2020	Dec 2020
	2,528	2,548	2,408	2,341	2,500	2,382	2,192	2,371	2,208	818	2,134	2,828
	1,918	1,738	1,696	1,662	1,815	1,767	1,651	1,779	1,790	880	1,666	2,156
Operating Profit	610	810	712	680	685	614	541	592	418	-62	467	672
OPM %	24%	32%	30%	29%	27%	26%	25%	25%	19%	-8%	22%	24%
Other Income	181	124	171	189	218	141	153	151	143	114	100	156
Interest	1	2	2	2	2	5	4	4	6	5	4	4
Depreciation	64	70	72	77	81	88	90	95	109	98	105	123
Profit before tax	726	862	809	789	820	663	601	644	447	-51	459	702
Tax %	36%	33%	32%	32%	34%	32%	5%	23%	32%	-9%	25%	24%
Net Profit	462	576	549	533	545	452	573	499	304	-55	343	533
EPS in Rs	16.93	21.13	20.12	19.54	19.97	16.55	20.99	18.27	11.14	-2.02	12.57	19.49
	Notes	Notes	Notes	Notes	Notes	Notes	Notes	Notes	Notes	Notes	Notes	Notes

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

	Dec 2008	Dec 2009	Dec 2010	Dec 2011	Dec 2012	Dec 2013	Dec 2014	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	TTM
	1,717	2,939	4,397	5,684	6,390	6,810	8,738	6,173	7,033	8,965	9,797	9,154	7,988
	1,723	2,800	4,050	5,095	5,841	6,097	7,624	4,484	4,859	6,157	6,893	6,971	6,492
Operating Profit	-6	139	347	589	549	713	1,115	1,690	2,174	2,808	2,904	2,183	1,496
OPM %	-0%	5%	8%	10%	9%	10%	13%	27%	31%	31%	30%	24%	19%
Other Income	111	111	137	142	137	95	107	326	417	536	701	573	514
Interest	10	9	10	8	4	8	10	2	4	5	7	19	18
Depreciation	37	54	57	64	82	130	220	137	154	223	300	382	435
Profit before tax	59	187	418	660	600	671	993	1,877	2,433	3,116	3,297	2,355	1,557
Tax %	-15%	31%	27%	25%	21%	22%	29%	29%	30%	30%	33%	22%
Net Profit	63	83	189	309	324	394	615	1,338	1,667	1,960	2,203	1,827	1,125
EPS in Rs	2.23	3.12	7.01	11.44	12.01	14.57	22.71	49.27	61.27	71.89	80.75	66.91	41.18
Dividend Payout %	22%	11%	16%	14%	17%	21%	22%	20%	16%	15%	15%	19%

Compounded Sales Growth
10 Years:	12%
5 Years:	1%
3 Years:	9%
TTM:	-15%

Compounded Profit Growth
10 Years:	36%
5 Years:	26%
3 Years:	3%
TTM:	-46%

Stock Price CAGR
10 Years:	37%
5 Years:	6%
3 Years:	-3%
1 Year:	51%

Return on Equity
10 Years:	27%
5 Years:	29%
3 Years:	25%
Last Year:	19%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Corporate actions

	Dec 2008	Dec 2009	Dec 2010	Dec 2011	Dec 2012	Dec 2013	Dec 2014	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Sep 2020
	28	27	27	27	27	27	27	27	27	27	27	27	27
Reserves	1,076	1,042	1,205	1,466	1,728	2,028	2,489	3,626	5,318	7,003	8,891	9,954	10,292
Borrowings	166	126	96	43	23	84	58	23	112	151	187	249	255
	1,034	1,301	1,636	2,257	2,694	3,197	3,829	1,263	1,552	2,341	2,281	2,220	2,361
Total Liabilities	2,303	2,482	2,963	3,793	4,471	5,337	6,403	4,939	7,009	9,522	11,387	12,450	12,936
	329	364	384	504	992	1,656	2,309	790	873	1,502	1,875	2,378	2,635
CWIP	52	12	70	352	504	464	419	94	374	333	450	312	40
Investments	6	294	459	513	638	825	1,078	3,388	4,987	5,581	4,923	5,749	3,377
	1,916	1,812	2,050	2,424	2,337	2,391	2,597	667	775	2,106	4,140	4,011	6,884
Total Assets	2,303	2,482	2,963	3,793	4,471	5,337	6,403	4,939	7,009	9,522	11,387	12,450	12,936

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

	Dec 2008	Dec 2009	Dec 2010	Dec 2011	Dec 2012	Dec 2013	Dec 2014	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020
	-89	368	336	405	496	716	1,047	1,463	1,708	2,482	1,575	1,694
	265	-266	-192	-338	-773	-790	-1,214	-1,001	-1,744	-2,145	-660	-1,508
	1,003	-164	-69	-114	-111	-47	-162	-466	25	-262	-292	-858
Net Cash Flow	1,180	-61	75	-47	-388	-121	-329	-4	-10	75	623	-673

Ratios

Consolidated Figures in Rs. Crores / View Standalone

	Dec 2008	Dec 2009	Dec 2010	Dec 2011	Dec 2012	Dec 2013	Dec 2014	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020
ROCE %		16%	32%	45%	35%	33%	40%	60%	53%	49%	41%	25%
Debtor Days	38	29	22	22	25	27	23	2	3	3	3	3
Inventory Turnover		7.99	12.30	11.01	10.11	9.26	9.97	7.30	11.65	12.86	9.97	8.40

Shareholding Pattern

Numbers in percentages

Mar 2018	Jun 2018	Sep 2018	Dec 2018	Mar 2019	Jun 2019	Sep 2019	Dec 2019	Mar 2020	Jun 2020	Sep 2020	Dec 2020
50.49	50.47	49.35	49.33	49.32	49.31	49.31	49.28	49.28	49.28	49.25	49.24
30.97	31.10	31.46	30.79	32.49	33.15	31.86	31.19	27.71	26.95	28.16	28.89
5.90	5.81	5.64	6.18	4.55	4.69	7.22	8.21	11.12	11.94	9.94	9.35
0.03	0.03	0.04	0.06	0.11	0.11	0.11	0.11	0.15	0.15	0.15	0.15
12.61	12.59	13.51	13.64	13.53	12.74	11.50	11.21	11.75	11.68	12.50	12.37

Eicher Motors Ltd

Peer comparison

Quarterly Results

Profit & Loss

Balance Sheet

Cash Flows

Ratios

Shareholding Pattern

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