Eicher Motors is one of the leading vehicle manufacturers across the world. It is the parent company of Royal Enfield. In addition to this, Eicher has also collaborated with AB Volvo and formed the VECV or Volvo Eicher Commercial Vehicles Limited. This joint venture is popular for driving India’s commercial vehicle modernisation.
The total market capitalisation of Eicher Motors, as of early 2018 is more than Rs.75,000 crore.
Company’s Wealth and Performance:
Q1 FY 2018-19
- For the quarter ended on June 30, 2018, Eicher Motors Limited reported its consolidated total revenue from operations to be Rs.2,547.7 crore, as against Rs.2,254.9 crore reported for the corresponding quarter of the previous financial year.
- The total income for the quarter stood at Rs.2,607.3 crore in comparison to Rs.2,332.6 crore stated for the June quarter of the previous fiscal year.
- The consolidated profit before tax for the quarter improved by a little over 20% y-o-y to Rs.861.62 crore from Rs.688.33 crore stated for the Q1 FY 2017-18. Considering the net profit after tax, it stood at Rs.576.18 crore in contrast to Rs.459.62 crore, y-o-y.
- The company’s basic earnings per share (EPS) for continuing operations stood at Rs.211.35 for the June quarter.
- For the financial year ended on March 31, 2018, Eicher Motors Limited recorded its total revenue from operations at Rs.8,965 crore - its highest ever. The same figure, at the end of the fiscal year 2016-17 was observed to be at Rs.7,033 crore. On a y-o-y basis, this marks a growth of 27.5%.
- The company’s EBITDA - Earnings before interest, taxes, depreciation and amortization, stood at Rs.2,808 crore - a y-o-y growth of 29.1%. Considering the company’s net profit after taxes, it was stated to be Rs.1,960 crore.
- Eicher Motors Limited reported its EPS for continuing operations at Rs.800.50, as against Rs.630.04 reported at the end of the previous fiscal year.
- The non-current liabilities of the company were reported to be worth Rs.226.9 crore - an increase of more than 60% y-o-y.
Q3 FY 2017-18
- The net sales turnover has hit a high of Rs.2,264.24 crore in the December quarter of the FY 2017-2018. During the same time last year, the net sales turnover for Eicher Motors stood at over Rs.1,800 crore.
- The total income of Eicher Motors in the December quarter of 2017 stands at above Rs.2,300 crore.
- Under the other income category, Eicher Motors earned Rs.48.24 crore in the December quarter. The highest income under this category was recorded in the June Quarter of 2017. It went up to Rs.129.43 crore which took the total income to Rs.2,129.33 crore.
- As a part of the expenses, the cost of consumed raw materials went up to Rs.1,149 crore. In the September quarter of FY 2017-2018, the cost of consumed raw materials was Rs.1,090.66 crore. It was as low as Rs.920.81 crore in the December quarter of FY 2016-2017.
- The employee expenses witnessed a substantial growth too. In December 2016, the expenses stood at a little over Rs.100 crore. However, in December 2017, the employee expenses were recorded at Rs.132.25 crore.
- The total expense of Eicher Motors stands at Rs.1,545.84 crore as of December 2017. During the same time last year, the total expenses of this organisation was recorded at Rs.1,250.77 crore.
- The equity capital has not really changed over the year. Currently, it stands at Rs.27.24 crore. In the September quarter, it was Rs.27.22 crore. In December 2016, the equity capital stood at Rs.27.20 crore.
Eicher Stock Trends in 2018:
- The Open Price for Eicher Motors stocks stood at Rs.30,472 (BSE) and Rs.30,300.95 (NSE). The Close Price stood at Rs.29,901.30 and Rs.29,839.15 for BSE and NSE, respectively. By the end of the month, prices dipped substantially. The Open Price stood at Rs.26,700 (BSE) and Rs.26,827.30 (NSE)
- The Open Price in the beginning of February stood at over Rs.26,000 for both BSE and NSE. The Close Price stood at Rs.27,995.35 and Rs.28,047.35 at BSE and NSE, respectively. By the end of February, the Open Price of Eicher Motors stock stood at Rs.26,860.10 and Rs.27,030 at BSE and NSE, respectively. The Close Price was Rs.27,421.45 (BSE) and Rs.27,437.75 (NSE).
- Over the course of March, the share price of Eicher Motors Limited moved up in a gradual manner. The scrip, which commenced the month trading at levels close to Rs.27,300, made marginal gains to reach the Rs.28,800 mark. It wasn’t until April that the stock price went on a dramatic bull run.
- The scrip moved up by a little over 10% to cross the psychologically important mark of Rs.30,000. In the second half of April, the Eicher Motors Limited shares were traded at levels above Rs.31,100. The closing price of the scrip on April 30 was Rs.31,188.6 on the NSE.
- However, through the months of May, June, and July, the shares exhibited a bearish trend. On May 2, the shares commenced trading at Rs.31,349. By the end of the month, the shares had descended back to their previous levels at Rs.30,300. In June, the prices descended further into the Rs.28,000 region.
- A similar trend was seen in the month of July as well. The shares touched the Rs.27,700 mark. In early August, the company announced a final dividend of 1,100%. This helped the shares bounce back to their previous levels at Rs.28,000. The scrip made further gains in early September.
Eicher Stock Trends in 2016 and 2017:
- The Open Price for Eicher Motors stocks stood at Rs.16,900 (BSE) and Rs.16,879 (NSE), on 1 January 2016. The High Price for these stocks on that date stood at Rs.17,690 (BSE) and Rs.17,689 (NSE). The Close Price stood at Rs.17,365.25 and Rs.17,370.85 for BSE and NSE, respectively. By the end of the month (29 January 2016), the Open Price went down for both BSE and NSE. For BSE, it stood at Rs.16,039 and for NSE it stood at Rs.16,000. The Close Price for Eicher Motors stocks on the same day was Rs.16,546 at both BSE and NSE.
- By the month of April, 2016, the Open Price for Eicher Motors stocks went up to Rs.19,149.70 (BSE) and Rs.19,080.60 (NSE). The Close Price in April stood at Rs.19,238.50 (BSE) and Rs.19,254.05 (NSE). By the end of April, 2016, the Open Price for the stocks went up to Rs.20,250 (BSE) and Rs.20,289 (NSE). The Close Price stood at Rs.20,035 and Rs.20,032, respectively.
- The stock prices slightly went down in the month of May as a result of the fact that the promoters sold 4.2 of the shares for Rs.2,100 crore.
- The net profits for Eicher Motors went up by over 58% at Rs.376 crore for Q1 FY 2016-2017.
- The prices of the shares kept climbing as the year progressed. In the month of September, on the very first day, the Open Price stood at Rs.22,816.90 (BSE) and Rs.22,751 (NSE). For BSE, the Close Price dropped slightly at went to Rs.22,786.40. By the end of September, 2016, Open Price went further up at RS.25,280 (BSE) and Rs.25,149 (NSE) for the Eicher stocks. The Close Price stood at Rs.24,917 (BSE) and Rs.24,827 (NSE) on that month.
- Compared to September, 2016, the stocks recorded a downward trend as Open Price stood at Rs.21,590 (BSE) and Rs.21,750 (NSE). The Close Price for the Eicher stocks in Q3 FY 2016-2017 was Rs.22,179.15 and Rs.22,202.25 at BSE and NSE, respectively. By the end of the month, conditions improved slightly and Open Price went up to Rs.21,620 (BSE). However, at NSE, the downward trend continued as Open Price stood at Rs.21,600. The Close Price was Rs.21,812.10 and Rs.21,803.05 at BSE and NSE, respectively.
- By 5 January 2017, the Eicher Stocks started showing an upward trend again. At BSE, the Open Price stood at Rs.22,359.05 and at NSE it stood at RS.22,315.45. The Close Price was Rs.22,324.75 and Rs.22,324.35 at BSE and NSE, respectively.
- By 8 April 2017, the stock showed a steady upward trend and at BSE the Open Price stood at Rs.25,550. At NSE, on the same day, the Open Price was Rs.25,559.95. The Close Price was recorded at Rs.25,806.85 (NSE) and Rs.25,778.30 (BSE).
- The Eicher Motors stocks showed substantial growth and Open Price on 6 September 2017 was Rs.31,691.10 (BSE) and Rs.31,747 (NSE). The High Price and Low Price on that day at BSE was Rs.32,167.95 and Rs.31,674, respectively. The High Price and Low Price on that day at NSE was Rs.32,121.15 and Rs.31,635.30, respectively. The Close Price for the Eicher stocks was Rs.32,040.90 (BSE) and Rs.32,082.60 (NSE).
- Stocks showed an upward trend in the month of November as the company received its Q2 net profits.
- The Open Price for Eicher Motors stocks stood at Rs.30,206.00 on 1 December 2017 at the BSE. At NSE, the Open Price was Rs.30,288. A slight dip was noticed by the end of the year as Open Price went down to Rs.29,939.30 and Rs.29,900 at BSE and NSE, respectively. However, the Close Price was more than Rs.30,000 at both BSE and NSE.
Should I invest in Eicher stocks?
Eicher Motors is one the leading commercial vehicle manufacturer in this country. Since the year 1965, has been owned completely by the Indian shareholders. Massey-Ferguson bought 30% of the company shares, and thus, partly owned The German Eicher tractor. In the year 1973, Massey-Ferguson purchase the German organisation.
The advantages of Eicher Motors Stocks are many. The debt is very low and it has shown amazing growth in the last 5 years. Along with the profit, dividend has also seen an upward curve. Excellent return of equity is also expected. The PE ratio is pretty high which can prove to be disadvantageous.
The Eicher Motors stocks have a potential of offering 12% returns in a time span as low as 1.5 months to 2 months. However, the entry price of the stock is pretty high and you might consider waiting for the prices to dip slightly. Alternatively, you may also choose to invest in mutual funds that put your funds in Eicher Motors.
Eicher Motors manufactures commercial vehicles and it was established in the year 1948. It is the parent company of Royal Enfield motorcycles which is one of the leading organisations offering motorcycles in the middleweight section. Royal Enfield operates in more than 40 countries across the globe, including India. There are two modern development centres of Royal Enfield – one is located in Chennai (India) and the other one is located in Leicestershire (UK).
Eicher Motors also has a joint venture with Volvo Group known as the VECV or Volvo Eicher Commercial Vehicles. There are 5 business units of VECV and they are mentioned below:
- VE Powertrain
- Eicher Engineering Components
- Volvo Trucks India
- Eicher Trucks and Buses
- Royal Enfield Motorcycles
History of Eicher Motors:
The organisation’s origin dates back to the time when Goodearth Company was formed for distribution of imported tractors. In the year 1959, Eicher Tractor Corporation of India Pvt. Ltd. was established.
Eicher Motors Limited sold the engines and tractors business to Tractors and Farm Equipment Limited (TAFE) of Chennai. TAFE holds the Massey Ferguson tractors license in India. The Eicher Group has diverse business interest in the development, design, and manufacture of buses, trucks, automotive gears, motorcycles, etc.
In the year 1982, Eicher Motors collaborated with Mitsubishi for manufacturing LCVs or Light Commercial Vehicles. The agreement was signed in Tokyo. The brand name under which the Light Commercial Vehicles were sold was known as Eicher Mitsubishi. In the year 1990, 26% stake in the Enfield India Limited was purchased by Eicher Goodearth. By 1993, a majority stake (around 60% equity shareholding) was acquired by Eicher.
A 50:50 joint venture was also started between Volvo Group and Eicher Motors in 2008. The venture is knowns as Volvo Eicher Commercial Vehicles or VECV. This company manufactures, designs and also markets engineering components, commercial vehicles, etc. Currently, 45.6% of the Volvo Eicher joint venture is owned by the Volvo Group.
Management of Eicher Motors:
Siddhartha Lal is the Chief Executive Officer (CEO) and the Managing Director (MD) of Royal Enfield. He is also the Chief Executive Officer (CEO) and the Managing Director (MD) of Eicher Motors Limited which is the flagship organisation of the Eicher Group in India. Since 2012, Mr. Lal has been the Chairman of Volvo Eicher Commercial Vehicles, the joint venture between Eicher Motors and Volvo Group. From July 2012, Mr. Lal has also taken up the role of Chairman for EPPL or Eicher Polaris Private Limited, the 0:50 joint venture between Polaris Industries Inc. and Eicher Motors. This joint venture will be designing, developing, and manufacturing a range of personal vehicles. Mr. Lal has been nominated as a part of the Global Agenda Council of WEF (World Economic Fund) on the Personal Transportation Systems. He completed his mechanical engineering course from Cranfield University and also holds a Master’s Degree from the University of Leeds in Automotive Engineering.
Lalit Malik is the CFO (Chief Financial Officer) and the Head of Business Development at Eicher Motors Limited. Before joining this organisation, Mr. Malik worked with Max India as the VP (Vice President) of the Corporate Development department. His primary responsibility there included management of the Max India finances in the insurance sector. Mr. Malik worked with GE Money where he took the role of the Financial Controller. He holds a Post Graduate Diploma from IIM, Bangalore in Management. He did his Chartered Accountant course from ICAI (Institute of Chartered Accountants of India).
Rudratej Singh hold the post of the President with Royal Enfield. He got on-board with this organisation in January 2015. He comes with an experience of more than 18 years in leading the Brand and Marketing department for various famous organisations across the world. As the President of Royal Enfield, Mr. Singh is responsible for building leadership for the company and heading the commercial business. Before working with Royal Enfield, Mr. Singh was working as the Unilever as their Vice President for HPC and Foods Marketing Operations in South Asia. He has won several accolades during his career. Mr. Singh is also a part of Asia CMO board and talks on a regular basis at different marketing forums. He is a veteran in mentoring and leading varied teams across different geographies and cultures.
B Govindarajan holds the designation of COO (Chief Operating Officer) with Royal Enfield from January 2013. Before that, he was the Senior Vice President of Royal Enfield. He joined the company in 2011. When he was then Senior Vice President at Royal Enfield, he involved himself actively in increasing the production of motorcycles at the facility in Thiruvottiyur. Under his lead, the production capacity went up to more than 1 lakh units every year. He is also leading the setting up of a second Royal Enfield plant at Oragadam. Before joining Royal Enfield as the Senior Vice President, Mr. Govindarajan worked with Patil Rail Infrastructure Limited as their Chief Operating Officer. He comes with an overall experience of 23 years in the industry.
Sudhakar Bhagavatula holds the designation of CIO or Chief Information Officer with Royal Enfield. He joined the organisation in 2014 and he comes with an experience of 23 years. Mr. Bhagavatula, at Royal Enfield, is responsible for driving the organisation’s IT strategy. He is also responsible for enabling the business process and enhancing IT infrastructure. Prior to working with Royal Enfield, Mr. Bhagavatula was working with GE Lighting as their CIO, ASPAC. He also worked with Oracle in the UK and the US in Consulting and Product Development divisions.
Rajeev Sharman holds the designation of the CHRO or Chief Human Resource Officer with Royal Enfield. He comes with an experience of over 20 years in human resource department and has worked with several prominent brands like GE Capital, Coca Cola India, Hindustan Unilever Limited, etc. Mr. Sharma joined Royal Enfield and led the HR operations for Oceania and South East Asia. He holds a PG degree from XLRI, Jamshedpur in HR.
Eicher Motors Listing and Indices:
Eicher Motors Limited forms a part of several indices and some of them are mentioned below:
- Nifty 100
- Nifty 200
- Nifty 50
- Nifty 500
- Nifty Auto
- S&P BSE 200
- S&P BSE 500
Eicher Motors Limited is listed on different Stock Exchange markets. Some of them are mentioned below:
- National Stock Exchange of India Limited (NSE)
- The Stock Exchange, Mumbai (BSE)
- Calcutta Stock Exchange Association Limited
- Delhi Stock Exchange Association Limited
- BSE – 505200
- NSE – EICHERMOT
- ISIN - INE066A01013
- Sector - AUTO-LCVS&HCVS
Eicher Motors Corporate Address:
CIN No. L34102Dl1982PLC129877
Registered Office: 3rd Floor, Select Citywalk, A – 3, District Centre, Saket, New Delhi – 110017.
Phone – +91-124-7102900
Email – firstname.lastname@example.org
Stocks vs. Mutual Funds: here's what we recommend
Stock market investments require a lot of research and knowledge. They do not generally offer any tax benefits and are regarded as high-risk investments. Hence,it is crucial to have a diversified portfolio. At Bankbazaar, we encourage our readers to invest on mutual funds . It doesn't require a lot of knowledge and equity linked mutual fund schemes offer tax benefits. Additionally, since mutual funds comprise stocks from multiple companies, they help in building a diversified portfolio.