Eicher Motors Ltd - Result Update - Emkay

Reco: HOLD
CMP: Rs 1,705
Target Price: Rs 1,915

Mixed bag, Downgrade to HOLD

- EBIDTA at 1.5bn (4% below est). APAT at Rs 854mn (in line). CV business surprised positively, while two wheeler performance was below est.

- Waiting list for two wheelers continues despite capacity increase. Strong CV performance will be driven by expansion in HD

- Fine tune CY12 est. by -2% to Rs 137.8. Introduce CY13 with EPS of Rs 161. See downside risk to vol. est. due to macro environment/capacity constraints

- Downgrade to HOLD with a TP of Rs 1,915 (current business value – Rs 1,762, NPV of engine business – Rs 153). Key triggers – faster capacity addition of two wheelers.

Source : Equity Bulls

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