Eicher Motors 4QFY2016 Results: Angel Broking

Views of Mr. Bharat Gianani (Sr. Research Analyst - Automobile, Angel Broking) on Eicher Motors 4QFY2016 Results:

"Eicher Motors 4QFY2016 consolidated results were in line with our estimates. Consolidated Revenues grew 45% YoY to INR 3,316 cr coming in line with our expectations. 2W business (Royal Enfield) topline grew strongly 55% YoY to INR 1,284 cr driven largely by volume growth. VECV segment revenues grew 39% YoY driven majorily by strong demand in the commercial vehicle segment and market share gains. Consolidated operating margins at 15.6% were in line with our estimates of 15.3%. However, the Royal Enfield posted highest ever margins of 28.6% (90 bp sequential improvement despite slightly lower volumes due to disruption by Chennai rains). Royal Enfield margins were better than our estimate of 26.5%. VECV segment margins at 7.4% were lower than our estimates of 8.1%. Consolidated Net Profit at INR 271 cr was in line with our estimates. We currently have ACCUMULATE rating on the stock."

Shares of EICHER MOTORS LTD. was last trading in BSE at Rs.18128.45 as compared to the previous close of Rs. 16940.65. The total number of shares traded during the day was 31414 in over 13638 trades.

The stock hit an intraday high of Rs. 18490.05 and intraday low of 16924.15. The net turnover during the day was Rs. 563162642.

Source : Equity Bulls

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