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EICHERMOT - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:15 pm
Back to Fundamental ListFundamental Rating: 4.3
| Stock Code | EICHERMOT | Market Cap | 1,97,969 Cr. | Current Price | 7,217 ₹ | High / Low | 7,328 ₹ |
| Stock P/E | 42.2 | Book Value | 701 ₹ | Dividend Yield | 0.98 % | ROCE | 31.7 % |
| ROE | 25.1 % | Face Value | 1.00 ₹ | DMA 50 | 6,977 ₹ | DMA 200 | 6,201 ₹ |
| Chg in FII Hold | 1.16 % | Chg in DII Hold | -1.05 % | PAT Qtr | 1,208 Cr. | PAT Prev Qtr | 1,306 Cr. |
| RSI | 51.3 | MACD | 43.8 | Volume | 3,37,716 | Avg Vol 1Wk | 5,38,603 |
| Low price | 4,644 ₹ | High price | 7,328 ₹ | PEG Ratio | 1.08 | Debt to equity | 0.01 |
| 52w Index | 95.9 % | Qtr Profit Var | 19.6 % | EPS | 171 ₹ | Industry PE | 29.6 |
📊 Core Financials
- Revenue & Profitability: PAT stood at 1,208 Cr. vs 1,306 Cr. previous quarter, showing slight decline but overall strong profitability.
- Margins: ROE at 25.1% and ROCE at 31.7% reflect excellent efficiency and profitability.
- Debt Ratios: Debt-to-equity at 0.01 — virtually debt-free, ensuring financial resilience.
- Cash Flows: Dividend yield of 0.98% provides modest shareholder returns while retaining growth capital.
💹 Valuation Indicators
- P/E Ratio: 42.2 vs Industry PE of 29.6 — moderately overvalued compared to peers.
- P/B Ratio: Current Price 7,217 ₹ / Book Value 701 ₹ ≈ 10.3, premium valuation.
- PEG Ratio: 1.08 — fair growth-adjusted valuation, supportive of long-term growth potential.
- Intrinsic Value: Strong fundamentals justify premium pricing, though valuations are slightly stretched.
🏢 Business Model & Competitive Advantage
- Operates in premium motorcycles (Royal Enfield) and commercial vehicles, with strong brand equity.
- Competitive advantage lies in iconic brand positioning, global expansion, and debt-free structure.
- Institutional sentiment mixed: FII holdings increased (+1.16%), while DII holdings reduced (-1.05%).
📈 Technical & Entry Zone
- DMA 50: 6,977 ₹ | DMA 200: 6,201 ₹ — stock trading above support levels.
- RSI: 51.3 — neutral zone, balanced momentum.
- MACD: 43.8 — bullish momentum persists.
- Entry Zone: Attractive near 6,600–6,800 ₹ for accumulation.
- Long-Term Holding: Strong candidate for long-term portfolio given brand strength, profitability, and global expansion.
✅ Positive
- Excellent ROE (25.1%) and ROCE (31.7%).
- Debt-free balance sheet (Debt-to-equity 0.01).
- Strong brand equity with Royal Enfield and commercial vehicle segment.
- FII holdings increased (+1.16%), showing foreign investor confidence.
⚠️ Limitation
- Moderately high P/E ratio (42.2) compared to industry average.
- P/B ratio of 10.3 indicates premium valuation.
- DII holdings reduced (-1.05%), showing weaker domestic institutional sentiment.
📉 Company Negative News
- PAT declined slightly from 1,306 Cr. to 1,208 Cr.
- Valuations remain stretched compared to industry benchmarks.
📈 Company Positive News
- Quarterly profit variation (+19.6%) indicates strong YoY growth.
- FII holdings increased (+1.16%), reflecting foreign investor confidence.
🏭 Industry
- Industry PE at 29.6 — sector trades at moderate valuations.
- Automobile industry benefits from rising premium motorcycle demand and global expansion opportunities.
🔎 Conclusion
EICHERMOT is a fundamentally strong company with excellent return ratios, debt-free balance sheet, and iconic brand positioning. Valuations are slightly stretched, but entry is attractive near 6,600–6,800 ₹. It remains a solid long-term holding given strong fundamentals, profitability, and industry tailwinds.
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