Eicher Motors - Buses continues to grow strongly with 41% YoY growth - Motilal Oswal

- Eicher Motor's Apr-13 CV volumes declined 7% YoY (-11% MoM) to 3,917 units (v/s est 3,638 units). Sales volumes were higher across segments v/s our estimates.

- LMD segment declined by 10.6% YoY (-24.6% MoM) to 2,126 units. For CY13, we estimate Eicher's LMD segment to decline by 12.8%.

- HD volumes declined by 35.3% YoY (-42.2% MoM) to 506 units. For domestic HD segment, we estimate 5.6% decline in CY13 for Eicher Motors due to challenging macro-economic environment.

- Bus volumes have increased by 41.4% YoY (+6.6% MoM) to 1,134 units. For CY13, Eicher buses are expected to grow by 11.8%.

- CY13 would witness the benefit in volumes from the start of bus body plant (in 1QFY13), commencement of medium duty engine project (3QCY13) and launch of the new HD range in 4QCY13 (jointly developed by Eicher-Volvo).

- Royal Enfield sales have grown by 42% YoY to 12,788 units. The company is targeting sales of 175,000 units (v/s 113k units in CY12).

- Eicher Motors trades at 26.6x/18.7x/13.7x CY13E/CY14E/CY15E EPS of INR 114.3/163.0/222.5. Maintain Buy.

Source : Equity Bulls

Keywords