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Eicher Motors Ltd. – Made Like a Gun
Eicher Motors Restricted (EML), included in 1982, is the listed flagship firm of the Eicher Group in India and a number one participant within the Indian vehicle business. On a standalone foundation, EML manufactures and markets bikes below the long-lasting Royal Enfield model, with its manufacturing amenities primarily based in Chennai, Tamil Nadu. Moreover, the corporate operates as a holding firm for investments in VE Business Autos Restricted.
A three way partnership of EML (54.4%) and AB Volvo (45.6%), VECV got here into existence with impact from July 1, 2008. The JV is engaged in EML’s truck and bus operations, auto elements enterprise and technical consulting companies enterprise, and Volvo Group’s Indian truck gross sales and advertising capabilities, in addition to service and spares community operations for each Volvo vans and buses.
Valuation:
The corporate continues to broaden its addressable market by way of growing its distribution community, new product launches, and personalization initiatives via the ‘Make it Yours’ (MIY) platform. VECV can be anticipated to see a cyclical restoration in volumes and income because the CV business recovers. At CMP, the inventory trades at 34x of FY24E EPS. We suggest a BUY score within the inventory with a goal worth (TP) of Rs.3725, 40x FY24E EPS.
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