₹1.22 to ₹3,207: Bluechip stock goes from ₹1 lakh to ₹26.28 Cr in 23 years

Eicher Motors share price history

The shares of Eicher Motors Ltd. they closed the quotation on Friday at 3,207.00 per share, up 0.96% from the previous close of 3,176.45. The share price rose from Rs. 1.22 on January 1, 1999, to the level it is at now, representing a multibagger performance and an all-time high of 262,768.85%. Thus, if an investor had invested 1 lakh in Eicher Motors stock 23 years ago, it would be worth it nowadays 26.28 Cr. The stock has increased 1.77% over the past five years and is up 28.49% over the past year. On a YTD basis, the stock has gained 17.96% through 2022. On the NSE, the stock had touched a 52-week high. 3,265.95 on August 11, 2022 and a minimum of 52 weeks of 2,159.55 on 08-Mar-2022, which indicates that at the current market price the stock is trading 48.50% above its 52-week low.

Eicher Motors Q1FY23 Results

Eicher Motors Limited reported total revenue from operations of Rs. 3,397 crore for the quarter ended June 30, 2022, a growth of 72% from Rs. 1,974 million in the same quarter of the fiscal year 2021-2022. EBITDA increased by 128% YoY to Rs. 831 million rupees. 363 million in the same quarter of the previous year. Profit after tax (PAT) rose 157% YoY to Rs. 611 million rupees. 237 million during the same period last year. Compared to 122,170 bikes sold during the same period in FY2021-22, Royal Enfield sold 186,032 motorcycles in Q1FY23, a growth of 52%.

Commenting on the company’s performance in the first quarter of 2013, Siddhartha Lal, Managing Director, Eicher Motors Ltd. said, “We had an excellent quarter to start this financial year, our international volumes continue to experience steady growth with over 60% year-over-year growth We posted our highest ever quarterly revenue and EBITDA driven by record international sales volumes We recently launched the exciting new neo-retro style roadster, the Hunter 350. We have just concluded the global launch program and the first trip to Bangkok with the world’s biggest press. There was a lot of energy and a very enthusiastic response to the bike. We are sure that Hunter will introduce new audiences and new geographies to the brand. VECV, our commercial vehicle joint venture with the Volvo Group, recorded its highest volumes in the first quarter. The quarter also witnessed the inauguration of the first electric city bus delivered to the city of Chandigarh”.

Commenting on Royal Enfield’s performance, B. Govindarajan, CEO, Royal Enfield and Director, Wholetime, EML said, “We continue to work towards our vision of becoming a truly global motorcycle brand, our growth drive at Royal Enfield continues to be promising, led by some fantastic numbers in our international markets. We recently launched the Hunter 350 to a spectacular reception from the Indian and global public. As we begin retail in India, we are We are sure that the Hunter 350 will open up a new market for us and thereby attract new customers to Royal Enfield. With products like the Scram 411 and the Hunter 350, we are creating updated formats to experience pure motorcycling. With the upcoming festive season, rising market and consumer sentiment and improved supply chain and availability of parts, we are confident of continued and sustained growth of Royal Enfield in the coming s quarters”.

Commenting on the performance of Volvo Eicher Commercial Vehicles Limited (VECV), Vinod Aggarwal, MD and CEO of VECV said, “With the Indian commercial vehicle market on the recovery path supported by government spending on infrastructure and replacement of the restrained fleet, there are great opportunities. in the market. It is encouraging to note that we are developing well in all segments by following a customer-centric approach, expanding the reach of our distribution network and expanding our product range. Margins remained under pressure during the quarter, largely due to high inflation in a competitive market.”

Should You Buy Eicher Motors Stock?

Brokerage firm Motilal Oswal said in a note that “Consolidated EPS to grow at 46% CAGR in FY22-24E; Maintain Buy: We increase our FY23E/FY24E consolidated EPS by 3%/5% to reflect the lower commodity prices and operating leverage. Improved supply, new product launches and increased exports will drive RE’s next phase of growth. This, along with stable commodity prices firsts will support margins and drive earnings growth Share trades at 28.9x/20.9x FY23E/FY24E consolidated EPS Maintain Buy rating with TP of INR 3,600/share (24 Sep SoTP) .”

Research analysts at ICICI Securities said, “EML’s share price has been largely flat over the past five years amid a muted volume trajectory, underperforming the Nifty index Broader Auto We upgrade EML to BUY from HOLD amid affordable offering in premium segment (Hunter 350), supporting volume growth over FY22-24E We rate EML 3,650 according to SOTP; assigning 30x PE to RE business and 30x PE to VECV business in FY24E numbers”.

With attractive prices for Hunter 350 (Lowest price offer for RE a 1.5 lakh/unit, ex-showroom), network optimization and growing global presence, we expect RE volumes to grow at a CAGR of 22% over FY22-24E, with a cyclical increase in domestic CV, CV to VECV volumes are expected to grow at a CAGR of 21% FY22-24E amid market share gains, overall on a consolidated basis, we expect net sales to grow at a CAGR of 22.1%. With operating leverage gains and input costs stable, margins are seen to improve to 26.1% and trailing RoCE stands at ~21% in FY24E and remains positive on net cash b/s with a positive generation of CFOs, which are the key triggers for the future of stocks. price performance according to research analysts at ICICI Securities.

Research analysts at brokerage firm Prabhudas Lilladher said: “Eicher delivered a positive surprise with a consolidated EBITDA margin of 24.5% (+80 bps q/q) versus our 23 estimates, 2% RE has recently launched Hunter 350 which is expected to bring in new customers due to its attractive pricing (~ 1.5 lakhs for the factory model) and differentiated product offering (light, non-cruiser, urban fit). It delivered the highest ever quarterly exports of ~29,000 units in 1QFY23 (compared to ~25k in 4QFY22). We expect the export business to witness significant growth over the next few years (we build at 30% CAGR in volume over FY22-24E) driven by channel expansion and market share gains. With new model launches in the pipeline, moderation in raw material costs and stabilizing chip supply, we expect operating leverage to begin. At VECV, demand continues to be a traction led by the cyclical recovery.”

“We maintain BUY on Eicher Motors as we anticipate (1) volume growth from new product launches (2) increase in export volume due to channel expansion and market share gains and (3) margin expansion as operating leverage kicks in (we build ~380bps EBITDA).expansion over FY22-24E).We raise our EPS estimates by 2/5% for the year fiscal 23/24 and assign a revised TP based on SoTP of 3,400 (at 28x FY24E EPS for standalone business vs. 27x prior to factor in positive outlook and 18x for VECV),” Prabhudas Lilladher research analysts said.

Disclaimer: The above opinions and recommendations are those of individual analysts or brokerage firms, and not of Mint.

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About the Author: Chaz Cutler

My name is Chasity. I love to follow the stock market and financial news!