⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
EICHERMOT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | EICHERMOT | Market Cap | 1,88,984 Cr. | Current Price | 6,890 ₹ | High / Low | 7,614 ₹ |
| Stock P/E | 40.2 | Book Value | 701 ₹ | Dividend Yield | 1.02 % | ROCE | 31.7 % |
| ROE | 25.1 % | Face Value | 1.00 ₹ | DMA 50 | 7,159 ₹ | DMA 200 | 6,470 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | 0.02 % | PAT Qtr | 1,208 Cr. | PAT Prev Qtr | 1,306 Cr. |
| RSI | 35.2 | MACD | -68.0 | Volume | 3,08,705 | Avg Vol 1Wk | 5,61,363 |
| Low price | 4,644 ₹ | High price | 7,614 ₹ | PEG Ratio | 1.03 | Debt to equity | 0.01 |
| 52w Index | 75.6 % | Qtr Profit Var | 19.6 % | EPS | 171 ₹ | Industry PE | 27.2 |
📊 Core Financials
- Revenue growth: Strong, with quarterly PAT at 1,208 Cr though slightly lower than previous quarter (1,306 Cr).
- Profit margins: Healthy, EPS at 171 ₹ indicates robust earnings power.
- Debt ratios: Excellent, debt-to-equity at 0.01 shows negligible leverage.
- Cash flows: Supported by consistent profitability and minimal debt burden.
- Return metrics: ROCE 31.7 %, ROE 25.1 % — very strong efficiency and shareholder returns.
💹 Valuation Indicators
- P/E ratio: 40.2, higher than industry average (27.2), suggests premium valuation.
- P/B ratio: Current Price / Book Value ≈ 9.8, expensive relative to assets.
- PEG ratio: 1.03, close to fair value relative to growth.
- Intrinsic value: Valuation stretched, but justified by strong fundamentals and brand strength.
🏢 Business Model & Competitive Advantage
- Operates in premium motorcycle segment under Royal Enfield brand.
- Strong brand loyalty and global expansion provide durable competitive advantage.
- Focus on niche mid-size motorcycles differentiates from mass-market competitors.
📈 Entry Zone & Long-Term Guidance
- Entry zone: Attractive near 6,400–6,600 ₹ levels, close to DMA 200 support.
- Long-term holding: Recommended due to strong ROE/ROCE, brand moat, and consistent profitability; suitable for patient investors despite premium valuation.
Positive
- Strong ROCE (31.7 %) and ROE (25.1 %).
- Negligible debt-to-equity ratio (0.01).
- EPS at 171 ₹ reflects robust earnings.
- Global brand recognition and loyal customer base.
Limitation
- P/E ratio (40.2) significantly above industry average (27.2).
- P/B ratio at 9.8 indicates expensive valuation.
- Quarterly PAT declined slightly from 1,306 Cr to 1,208 Cr.
Company Negative News
- Technical indicators weak: RSI at 35.2 (oversold), MACD negative.
- Stock trading below DMA 50, showing short-term weakness.
Company Positive News
- Strong quarterly profitability despite minor decline.
- FII and DII holdings increased marginally.
- Royal Enfield continues to expand globally with new launches.
Industry
- Automobile industry showing steady demand recovery, especially in premium motorcycle segment.
- Industry PE at 27.2, highlighting EICHERMOT’s premium valuation relative to peers.
Conclusion
- EICHERMOT demonstrates excellent fundamentals with high ROE/ROCE and negligible debt.
- Valuation is premium but supported by strong brand and consistent profitability.
- Entry advisable near support levels; long-term holding recommended for investors seeking exposure to premium motorcycle growth story.
Would you like me to extend this into a comparative HTML report against peers like Bajaj Auto and Hero MotoCorp to highlight relative strengths and valuation gaps?