Eicher Motors Ltd

About

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 [1]

Key Points

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[1]

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  • Market Cap 64,828 Cr.
  • Current Price 2,370
  • High / Low 3,037 / 2,304
  • Stock P/E 38.8
  • Book Value 422
  • Dividend Yield 0.72 %
  • ROCE 16.6 %
  • ROE 12.6 %
  • Face Value 1.00

Pros

  • Company has reduced debt.
  • Company is almost debt free.
  • Company is expected to give good quarter
  • Company has been maintaining a healthy dividend payout of 22.88%

Cons

  • The company has delivered a poor sales growth of 7.15% over past five years.
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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
2,341 2,500 2,382 2,192 2,371 2,208 818 2,134 2,828 2,940 1,974 2,250
1,662 1,815 1,767 1,651 1,779 1,790 880 1,666 2,156 2,306 1,651 1,780
Operating Profit 680 685 614 541 592 418 -62 467 672 634 324 470
OPM % 29% 27% 26% 25% 25% 19% -8% 22% 24% 22% 16% 21%
Other Income 189 218 141 153 151 143 114 100 156 183 122 118
Interest 2 2 5 4 4 6 5 4 4 4 6 3
Depreciation 77 81 88 90 95 109 98 105 123 125 112 109
Profit before tax 789 820 663 601 644 447 -51 459 702 689 328 476
Tax % 32% 34% 32% 5% 23% 32% -9% 25% 24% 24% 28% 22%
Net Profit 533 545 452 573 499 304 -55 343 533 526 237 373
EPS in Rs 19.54 19.97 16.55 20.99 18.27 11.14 -2.02 12.57 19.49 19.25 8.67 13.65

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
2,939 4,397 5,684 6,390 6,810 8,738 6,173 7,033 8,965 9,797 9,154 8,720 9,992
2,800 4,067 5,094 5,840 6,094 7,621 4,484 4,859 6,156 6,893 6,971 6,937 7,893
Operating Profit 139 330 590 550 715 1,118 1,690 2,174 2,809 2,904 2,183 1,783 2,100
OPM % 5% 8% 10% 9% 11% 13% 27% 31% 31% 30% 24% 20% 21%
Other Income 111 155 141 136 93 105 326 416 536 701 572 482 580
Interest 9 10 8 4 8 10 2 4 5 7 19 16 17
Depreciation 54 57 64 82 130 220 137 154 223 300 382 451 469
Profit before tax 187 418 660 600 671 993 1,877 2,433 3,116 3,297 2,355 1,798 2,194
Tax % 31% 27% 25% 21% 22% 29% 29% 30% 30% 33% 22% 25%
Net Profit 83 189 309 324 394 615 1,338 1,667 1,960 2,203 1,827 1,347 1,669
EPS in Rs 3.12 7.01 11.44 12.01 14.57 22.71 49.27 61.27 71.89 80.75 66.91 49.28 61.06
Dividend Payout % 11% 16% 14% 17% 21% 22% 20% 16% 15% 15% 19% 34%
Compounded Sales Growth
10 Years: 7%
5 Years: 7%
3 Years: -1%
TTM: 33%
Compounded Profit Growth
10 Years: 22%
5 Years: 0%
3 Years: -12%
TTM: 53%
Stock Price CAGR
10 Years: 31%
5 Years: 1%
3 Years: 0%
1 Year: -6%
Return on Equity
10 Years: 24%
5 Years: 23%
3 Years: 19%
Last Year: 13%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Sep 2021
27 27 27 27 27 27 27 27 27 27 27 27 27
Reserves 1,042 1,205 1,466 1,728 2,028 2,489 3,626 5,318 7,003 8,891 9,954 11,411 11,509
Borrowings 126 96 43 23 84 58 23 112 151 187 249 219 122
1,301 1,636 2,257 2,694 3,197 3,829 1,263 1,552 2,341 2,281 2,220 2,901 2,754
Total Liabilities 2,482 2,963 3,793 4,471 5,337 6,403 4,939 7,009 9,522 11,387 12,450 14,559 14,413
364 384 504 992 1,656 2,309 790 873 1,502 1,875 2,378 2,433 2,698
CWIP 12 70 352 504 464 419 94 374 333 450 312 314 105
Investments 294 459 513 638 825 1,078 3,388 4,987 5,581 4,923 5,749 3,902 5,691
1,812 2,050 2,424 2,337 2,391 2,597 667 775 2,106 4,140 4,011 7,909 5,919
Total Assets 2,482 2,963 3,793 4,471 5,337 6,403 4,939 7,009 9,522 11,387 12,450 14,559 14,413

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
368 336 405 496 716 1,047 1,463 1,708 2,482 1,575 1,694 1,714
-266 -192 -338 -773 -790 -1,214 -1,001 -1,744 -2,145 -660 -1,508 -1,648
-164 -69 -114 -111 -47 -162 -466 25 -262 -292 -858 -15
Net Cash Flow -61 75 -47 -388 -121 -329 -4 -10 75 623 -673 51

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 29 22 22 25 27 23 2 3 3 3 3 7
Inventory Days 36 36 38 39 41 41 33 33 31 46 42 62
Days Payable 79 66 49 58 72 74 61 66 83 81 72 110
Cash Conversion Cycle -14 -9 11 6 -3 -9 -27 -31 -50 -32 -26 -41
Working Capital Days -7 -11 -20 -20 -27 -33 -45 -49 -58 -35 -37 -23
ROCE % 16% 32% 45% 35% 33% 40% 60% 53% 49% 41% 25% 17%

Shareholding Pattern

Numbers in percentages

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
49.33 49.32 49.31 49.31 49.28 49.28 49.28 49.25 49.24 49.23 49.22 49.22
30.79 32.49 33.15 31.86 31.19 27.71 26.95 28.16 28.89 29.06 28.83 30.28
6.18 4.55 4.69 7.22 8.21 11.12 11.94 9.94 9.35 9.08 9.50 8.65
0.06 0.11 0.11 0.11 0.11 0.15 0.15 0.15 0.15 0.15 0.10 0.10
13.64 13.53 12.74 11.50 11.21 11.75 11.68 12.50 12.37 12.49 12.36 11.76

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