Nifty 17469.75 (1.71%)
Sensex 58643.42 (1.75%)
Nifty Bank 37284.7 (1.82%)
Nifty IT 35957.05 (1.94%)
Nifty Financial Services 18284.1 (1.70%)
Adani Ports 762.00 (2.32%)
Asian Paints 3110.00 (2.63%)
Axis Bank 695.90 (1.30%)
B P C L 391.45 (0.94%)
Bajaj Auto 3326.00 (1.20%)
Bajaj Finance 7360.00 (3.62%)
Bajaj Finserv 17600.00 (2.87%)
Bharti Airtel 715.95 (2.45%)
Britannia Inds. 3570.00 (2.76%)
Cipla 898.90 (1.09%)
Coal India 151.00 (0.23%)
Divis Lab. 4610.00 (-0.32%)
Dr Reddys Labs 4570.70 (1.11%)
Eicher Motors 2500.00 (1.14%)
Grasim Inds 1718.00 (1.93%)
H D F C 2854.95 (1.33%)
HCL Technologies 1170.05 (1.77%)
HDFC Bank 1553.50 (1.82%)
HDFC Life Insur. 686.30 (-1.17%)
Hero Motocorp 2490.95 (1.18%)
Hind. Unilever 2338.60 (0.73%)
Hindalco Inds. 456.40 (3.14%)
I O C L 120.50 (-0.08%)
ICICI Bank 753.55 (2.57%)
IndusInd Bank 943.20 (1.79%)
Infosys 1752.40 (2.38%)
ITC 224.70 (1.84%)
JSW Steel 673.00 (1.87%)
Kotak Mah. Bank 1921.95 (-0.78%)
Larsen & Toubro 1823.40 (1.41%)
M & M 839.90 (1.69%)
Maruti Suzuki 7415.55 (3.19%)
Nestle India 19469.70 (0.65%)
NTPC 127.40 (1.64%)
O N G C 148.50 (1.78%)
Power Grid Corpn 205.10 (-0.34%)
Reliance Industr 2420.95 (1.64%)
SBI Life Insuran 1171.00 (1.02%)
Shree Cement 26106.90 (1.40%)
St Bk of India 490.60 (2.92%)
Sun Pharma.Inds. 761.60 (2.41%)
Tata Consumer 770.90 (1.34%)
Tata Motors 493.60 (2.45%)
Tata Steel 1174.75 (2.26%)
TCS 3624.00 (1.10%)
Tech Mahindra 1604.35 (1.76%)
Titan Company 2408.00 (1.15%)
UltraTech Cem. 7424.00 (1.71%)
UPL 729.30 (0.32%)
Wipro 642.10 (1.53%)
by 5paisa Research Team 12/11/2021

Founded in 1948,Eicher motors is a company that manufactures motorcycles and commercial vehicles worldwide.

The company reported a 9% YoY increase in profit, currently standing at Rs.373.2 crore for Q2 FY22. This increase can be attributed to the fact that the commercial vehicle sales have increased substantially whereas the Royal Enfield sales have dipped due to the ongoing semi conductor shortage. Revenue from operations increased from Rs.2,134 crore in Q2 FY21 to Rs.2,250 crore in Q2 FY22.

During Q2, Royal Enfield sold around 1,23,515 motorcycles. This is 17.2% less than the amount sold in the same quarter last year. The exports for motorcycles grew by 130% YoY this quarter. Exports are expected to be higher next quarter as shipping to cold countries starts next quarter. The company also launched a new range of motorcycles called Classic 350, which has received a positive response from the customers. There has been a minimal level of cannibalization between Meteor and Classic 350.

In contrast, the commercial vehicle segment’s joint venture with Volvo reaped a sales volume growth of a whopping 85%, from 8167 units in Q2 FY21 to 15,134 units in Q2 FY22. The company was able to grasp 34% of the market share in the LMD segment in Q2 FY22. The VECV’s revenue was up by 80% YoY, from Rs.1,753 crore in Q2 FY21 to Rs.3,153 crore in Q2 FY22. Last year a loss of Rs.7.2 crore was realized but this year it turned into a profit of Rs.18 crore.

According to the management, the current demand is much more than the available supply but price hikes are not expected as of yet. There were two price hikes in July and September 2021. The accessory sales of bikes have gone up 2 times due to high sales on the MIY app.

The EBITDA predicted for FY22 remains at 23.9%. Analysts increased the target price from Rs.2,374 to Rs.2,526 with a Neutral call.

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