EICHERMOT - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.5

🏍️ Core Financials Rundown

Profitability & Growth

EPS: ₹173 ➜ exceptionally high ➜ strong earnings power

PAT Growth: ₹1,362 Cr vs ₹1,170 Cr ➜ up 27.2% QoQ ➜ clear growth momentum

Efficiency Metrics

ROE: 24.1% | ROCE: 29.8% ➜ impressive returns on equity & capital

Debt & Dividend

Debt-to-equity: 0.02 ➜ virtually debt-free ➜ financial flexibility

Dividend Yield: 1.28% ➜ steady reward to shareholders

📌 Insight: Stellar profitability and balance sheet strength ➜ reflects prudent management and demand resilience.

📊 Valuation Signals

Metric Value Commentary

P/E Ratio 31.7 fairly priced near industry average (31.1)

P/B Ratio ~7.04 (₹5,470 / ₹777) ➜ premium valuation tied to brand value

PEG Ratio 0.77 good ➜ suggests earnings growth is slightly undervalued

📉 Verdict: Valuation is in line with sector norms ➜ PEG gives a slight edge for accumulation.

🚦 Business Model & Competitive Edge

Flagship brand Royal Enfield — global cult following in mid-weight motorcycles

Expanding portfolio into premium and EV space

Moats

Brand loyalty and lifestyle positioning

Low-cost manufacturing with pricing power

Global expansion via CKD plants & retail footprint

📌 Challenges

EV transition pressure and regulatory norms

Competition heating up from Bajaj-Triumph, Hero-Harley, and new entrants

Margin sensitivity to commodity prices and export forex fluctuations

📈 Technical Setup

RSI: 44.8 ➜ mildly oversold ➜ scope for bounce

MACD: -27.3 ➜ bearish crossover ➜ signals short-term weakness

Price near DMA 50 & 200 ➜ possible consolidation phase

✅ Suggested Entry Zone: ₹5,220–₹5,360 🔄 Better to accumulate post MACD improvement or support confirmation near DMA 200

🧭 Long-Term Holding Outlook

📍 Ideal for investors looking for

Exposure to premium two-wheeler & aspirational auto demand

Low-debt, brand-driven business with consistent growth

Potential upside from EV and international play

🎯 Monitor

EV rollout timeline (Himalayan Electric, Bullet Electric)

Operating margins and volumes in domestic vs export mix

Brand diversification into apparel & lifestyle segments

Want to see how Eicher stacks up against Bajaj Auto or TVS Motor on volume growth and global footprint? I can chart out the torque behind each engine.

Edit in a page