⚠ 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: 4.5
| Stock Code | EICHERMOT | Market Cap | 1,92,689 Cr. | Current Price | 7,029 ₹ | High / Low | 8,233 ₹ |
| Stock P/E | 38.8 | Book Value | 701 ₹ | Dividend Yield | 1.00 % | ROCE | 31.7 % |
| ROE | 25.1 % | Face Value | 1.00 ₹ | DMA 50 | 7,401 ₹ | DMA 200 | 6,762 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | 0.02 % | PAT Qtr | 1,333 Cr. | PAT Prev Qtr | 1,208 Cr. |
| RSI | 40.7 | MACD | -178 | Volume | 5,84,016 | Avg Vol 1Wk | 8,44,592 |
| Low price | 5,000 ₹ | High price | 8,233 ₹ | PEG Ratio | 0.99 | Debt to equity | 0.01 |
| 52w Index | 62.8 % | Qtr Profit Var | 26.2 % | EPS | 180 ₹ | Industry PE | 29.0 |
📊 Core Financials
- Revenue growth: Strong, PAT rose to 1,333 Cr. from 1,208 Cr.
- Profit margins: EPS at 180 ₹, ROE 25.1%, ROCE 31.7% — excellent efficiency
- Debt ratios: Very low debt-to-equity at 0.01, nearly debt-free
- Cash flows: Robust profitability supports strong cash generation
- Return metrics: ROE and ROCE significantly above industry averages
💹 Valuation Indicators
- P/E Ratio: 38.8, higher than industry PE of 29.0, reflects premium valuation
- P/B Ratio: ~10.0 (7,029 ₹ / 701 ₹), high but justified by strong returns
- PEG Ratio: 0.99, fair valuation relative to growth
- Intrinsic Value: Slightly overvalued at current levels, but supported by strong fundamentals
🏢 Business Model & Competitive Advantage
- Operates in premium motorcycle segment under Royal Enfield brand
- Strong competitive advantage through brand loyalty, niche positioning, and global expansion
- Healthy demand outlook driven by lifestyle appeal and international markets
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near 6,500–6,800 ₹ range
- Long-Term Holding: Recommended, strong fundamentals and brand advantage support sustained growth
✅ Positive
- High ROE (25.1%) and ROCE (31.7%) indicate excellent capital efficiency
- Debt-to-equity ratio at 0.01 shows near debt-free status
- Quarterly profit growth of 26.2% demonstrates strong momentum
⚠️ Limitation
- P/E ratio (38.8) above industry average, reflects premium valuation
- P/B ratio at ~10 is relatively high
📰 Company Negative News
- Stock trading below 50 DMA (7,401 ₹), showing short-term weakness
- RSI at 40.7 indicates mildly oversold conditions
🌟 Company Positive News
- PAT increased to 1,333 Cr. from 1,208 Cr.
- FII holding increased (+0.03%), DII holding also up (+0.02%)
- Dividend yield at 1.00% provides shareholder returns
🏭 Industry
- Automobile industry PE at 29.0, Eicher trades at a premium due to strong brand and profitability
- Industry growth supported by rising demand for premium motorcycles and exports
🔎 Conclusion
- EICHERMOT shows strong fundamentals with robust profitability, high returns, and minimal debt
- Valuation is premium but justified by brand strength and growth prospects
- Recommended for long-term holding, with entry near 6,500–6,800 ₹ offering better risk-reward