Q3FY21 Result Update - Eicher Motors - ICICI Direct

Eicher Motors (EML) posted decent Q3FY21 results. Consolidated revenues were at Rs. 2,828 crore (up 19.3% YoY), tracking Royal Enfield (RE) volume of ~2 lakh units and flat ASPs QoQ at Rs. 1.4 lakh/unit. EBITDA margins at 23.8% were up 168 bps QoQ on the back of operating leverage benefits, with gross margins down ~110 bps QoQ. Consequent consolidated PAT was at Rs. 533 crore (up 6.8% YoY), with share of profit from VECV JV at Rs. 31.4 crore.

Valuation & Outlook

For EML, we factor in 22%, 39% sales, PAT CAGR, respectively, in FY21E-23E. At the CMP it is trading near its long term forward valuation multiples and captures the positives adequately, leaving limited room for upside. We maintain HOLD rating and value EML at Rs. 3,050 on SOTP basis (33x FY23E EPS to RE; 25x FY23E EPS to VECV; previous target price of Rs. 2,650).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_EicherMotors_Q3FY21.pdf

Shares of EICHER MOTORS LTD. was last trading in BSE at Rs.2779.25 as compared to the previous close of Rs. 2818.5. The total number of shares traded during the day was 273467 in over 8711 trades.

The stock hit an intraday high of Rs. 2846 and intraday low of 2766.65. The net turnover during the day was Rs. 765685038.

Source : Equity Bulls

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