Eicher motors LTD
Eicher motors operates in consumer discretionary sector. It is a Blue-chip company with the capitalization of ₹95,042.27cr
The Eicher group in India is a popular choice in the automatic market. The closing price per share for Eicher motors limited was. ₹3473.00 on Friday, up 1.38% from the previous close of ₹3425.75.
- 52 weeks high is ₹3513.70 reached on 25 August 2022.
- 52 weeks low is ₹2159.55 reached on 8th March 2022
The last traded price is 61% above the 52-week low. The brokerage firm ICICI securities research analyst Shashank Kanodia and Raghvendra Goyal has set the stock’s target price at ₹4,170.00 with a 12-month Target period. They suggest that the stock is set to reach new 52-week highs in 12-month period.
They have said this, “after the Eicher motors (EML) has recently launched Hunter 350 at a reasonable showroom price of 1.5 lakh/unit. Nationally, The EML, with Hunter 350 is targeting the first-time buyers. They are planning to upgrade from the 100 cc+ and will be addressing the greater than 125cc segment market with market size up to 32 lakh units. This year FY22 they sold 5.2 lakh units. Internationally, the addressable market size is up to 10 lakh units (sales in FY22 at 80000 units)”
The research analyst Shashank Kanodia and Raghvendra Goyal of the brokerage firm ICICI securities added that healthy response to Hunter 350 and intent to shift consumer preference to more superior offerings. We expect RE volumes to grow at a CAGR of 25% over FY22-24.
They further claimed that “EML’s stock price is grown at 2% CAGR in last five years from ₹3,200 in September 2017. Underperforming Broader Nifty Auto Index. We maintain buy amid healthy volume growth aspects over FY22-24. Upgrading our numbers, we now value EML at ₹4,170 on SOTP basis; assigning 34x PE to RE business and 30x PE to VECV business on FY24E.”
They mentioned the key risks for the stock for its future performance,
- Cannibalization of premium offerings amid new budget,
- Lower than anticipated volume growth limiting operating leverage benefits in FY22-24
Eicher motors, over the years has grown from ₹1.22 on January 1st 1999, to the current market price. Enrolling itself in the multibagger list of stocks. With a return of all time high of 2,84,572.13%. The reports say, the 49.21% of the shareholding belongs to promoter for quarter ended June 2022.