{"id":13578,"date":"2018-04-27T16:05:36","date_gmt":"2018-04-27T10:35:36","guid":{"rendered":"https:\/\/blog.fundsindia.com\/blog\/?p=13578"},"modified":"2018-04-27T16:14:20","modified_gmt":"2018-04-27T10:44:20","slug":"eicher-motors-ltd","status":"publish","type":"post","link":"https:\/\/www.fundsindia.com\/blog\/equities\/eicher-motors-ltd\/13578","title":{"rendered":"Eicher Motors Ltd"},"content":{"rendered":"<p>Eicher Motors Limited (EML) is the flagship company of the Eicher Group. It operates in two distinct business verticals \u2013 motorcycles and commercial vehicles. Eicher Motors owns the iconic Royal Enfield motorcycle business, which leads the premium motorcycle segment in India.<\/p>\n<p><strong>Outlook and Valuation:<\/strong> Given strong earnings growth potential in both RE &amp; VECV businesses, we estimate consolidated PAT to grow at a robust CAGR of 23% over FY17-20E. The free cash flow generation of the company continues to remain strong despite significant capex. We expect RE\u2019s premium valuation to sustain given its continued volume outperformance leading to market share gains. Further its industry leading margins and return ratios will also support higher valuation. The stock currently trades at 38x\/32x\/27x FY18E\/19E\/20E EPS. We recommend BUY rating on the stock with a SOTP based target price of Rs. 35,512, valuing RE\/VECV at 33x\/15x FY20E EPS.<\/p>\n<p><a href=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2018\/04\/Research-Report-Eicher-Motors-Ltd.pdf\">Research Report &#8211; Eicher Motors Ltd<\/a><\/p>\n<p><i>Investments in equity shares, debentures, etc., are not obligations of, or guaranteed by Wealth India Financial Services Pvt. Ltd., and are subject to investment risks.\u00a0<a href=\"http:\/\/pages.fundsindia.com\/pages\/disclaimer-equities\/\">Click here<\/a>\u00a0to read our full disclaimer.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Eicher Motors Limited (EML) is the flagship company of the Eicher Group. It operates in two distinct business verticals \u2013 motorcycles and commercial vehicles. Eicher Motors owns the iconic Royal Enfield motorcycle business, which leads the premium motorcycle segment in India. Outlook and Valuation: Given strong earnings growth potential in both RE &amp; VECV businesses, [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[59],"tags":[548],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Eicher Motors Ltd<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fundsindia.com\/blog\/equities\/eicher-motors-ltd\/13578\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Eicher Motors Ltd\" \/>\n<meta property=\"og:description\" content=\"Eicher Motors Limited (EML) is the flagship company of the Eicher Group. It operates in two distinct business verticals \u2013 motorcycles and commercial vehicles. Eicher Motors owns the iconic Royal Enfield motorcycle business, which leads the premium motorcycle segment in India. Outlook and Valuation: Given strong earnings growth potential in both RE &amp; VECV businesses, [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fundsindia.com\/blog\/equities\/eicher-motors-ltd\/13578\" \/>\n<meta property=\"og:site_name\" content=\"Insights\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/fundsindia\" \/>\n<meta property=\"article:published_time\" content=\"2018-04-27T10:35:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2018-04-27T10:44:20+00:00\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Equities Desk\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.fundsindia.com\/blog\/#organization\",\"name\":\"Wealth India Financial Services\",\"url\":\"https:\/\/www.fundsindia.com\/blog\/\",\"sameAs\":[\"https:\/\/www.facebook.com\/fundsindia\"],\"logo\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.fundsindia.com\/blog\/#logo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2018\/07\/download.jpeg\",\"contentUrl\":\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2018\/07\/download.jpeg\",\"width\":189,\"height\":200,\"caption\":\"Wealth India Financial Services\"},\"image\":{\"@id\":\"https:\/\/www.fundsindia.com\/blog\/#logo\"}},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.fundsindia.com\/blog\/#website\",\"url\":\"https:\/\/www.fundsindia.com\/blog\/\",\"name\":\"Insights\",\"description\":\"Official blog of FundsIndia.com\",\"publisher\":{\"@id\":\"https:\/\/www.fundsindia.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.fundsindia.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fundsindia.com\/blog\/equities\/eicher-motors-ltd\/13578#webpage\",\"url\":\"https:\/\/fundsindia.com\/blog\/equities\/eicher-motors-ltd\/13578\",\"name\":\"Eicher Motors Ltd\",\"isPartOf\":{\"@id\":\"https:\/\/www.fundsindia.com\/blog\/#website\"},\"datePublished\":\"2018-04-27T10:35:36+00:00\",\"dateModified\":\"2018-04-27T10:44:20+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/fundsindia.com\/blog\/equities\/eicher-motors-ltd\/13578#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/fundsindia.com\/blog\/equities\/eicher-motors-ltd\/13578\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/fundsindia.com\/blog\/equities\/eicher-motors-ltd\/13578#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.fundsindia.com\/blog\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Eicher Motors Ltd\"}]},{\"@type\":\"Article\",\"@id\":\"https:\/\/fundsindia.com\/blog\/equities\/eicher-motors-ltd\/13578#article\",\"isPartOf\":{\"@id\":\"https:\/\/fundsindia.com\/blog\/equities\/eicher-motors-ltd\/13578#webpage\"},\"author\":{\"@id\":\"https:\/\/www.fundsindia.com\/blog\/#\/schema\/person\/78222a5d6aef66b1f386dfa767382656\"},\"headline\":\"Eicher Motors Ltd\",\"datePublished\":\"2018-04-27T10:35:36+00:00\",\"dateModified\":\"2018-04-27T10:44:20+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/fundsindia.com\/blog\/equities\/eicher-motors-ltd\/13578#webpage\"},\"wordCount\":193,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.fundsindia.com\/blog\/#organization\"},\"keywords\":[\"Eicher Motors Ltd\"],\"articleSection\":[\"Equity Research\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/fundsindia.com\/blog\/equities\/eicher-motors-ltd\/13578#respond\"]}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.fundsindia.com\/blog\/#\/schema\/person\/78222a5d6aef66b1f386dfa767382656\",\"name\":\"Equities Desk\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.fundsindia.com\/blog\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/2620d09063050fc426411ab6ea46fc72?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/2620d09063050fc426411ab6ea46fc72?s=96&d=mm&r=g\",\"caption\":\"Equities Desk\"},\"sameAs\":[\"http:\/\/www.fundsindia.com\"],\"url\":\"https:\/\/www.fundsindia.com\/blog\/author\/equities-desk\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Eicher Motors Ltd","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/fundsindia.com\/blog\/equities\/eicher-motors-ltd\/13578","og_locale":"en_US","og_type":"article","og_title":"Eicher Motors Ltd","og_description":"Eicher Motors Limited (EML) is the flagship company of the Eicher Group. It operates in two distinct business verticals \u2013 motorcycles and commercial vehicles. Eicher Motors owns the iconic Royal Enfield motorcycle business, which leads the premium motorcycle segment in India. Outlook and Valuation: Given strong earnings growth potential in both RE &amp; VECV businesses, [&hellip;]","og_url":"https:\/\/fundsindia.com\/blog\/equities\/eicher-motors-ltd\/13578","og_site_name":"Insights","article_publisher":"https:\/\/www.facebook.com\/fundsindia","article_published_time":"2018-04-27T10:35:36+00:00","article_modified_time":"2018-04-27T10:44:20+00:00","twitter_misc":{"Written by":"Equities Desk","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Organization","@id":"https:\/\/www.fundsindia.com\/blog\/#organization","name":"Wealth India Financial Services","url":"https:\/\/www.fundsindia.com\/blog\/","sameAs":["https:\/\/www.facebook.com\/fundsindia"],"logo":{"@type":"ImageObject","@id":"https:\/\/www.fundsindia.com\/blog\/#logo","inLanguage":"en-US","url":"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2018\/07\/download.jpeg","contentUrl":"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2018\/07\/download.jpeg","width":189,"height":200,"caption":"Wealth India Financial Services"},"image":{"@id":"https:\/\/www.fundsindia.com\/blog\/#logo"}},{"@type":"WebSite","@id":"https:\/\/www.fundsindia.com\/blog\/#website","url":"https:\/\/www.fundsindia.com\/blog\/","name":"Insights","description":"Official blog of FundsIndia.com","publisher":{"@id":"https:\/\/www.fundsindia.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.fundsindia.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/fundsindia.com\/blog\/equities\/eicher-motors-ltd\/13578#webpage","url":"https:\/\/fundsindia.com\/blog\/equities\/eicher-motors-ltd\/13578","name":"Eicher Motors Ltd","isPartOf":{"@id":"https:\/\/www.fundsindia.com\/blog\/#website"},"datePublished":"2018-04-27T10:35:36+00:00","dateModified":"2018-04-27T10:44:20+00:00","breadcrumb":{"@id":"https:\/\/fundsindia.com\/blog\/equities\/eicher-motors-ltd\/13578#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/fundsindia.com\/blog\/equities\/eicher-motors-ltd\/13578"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/fundsindia.com\/blog\/equities\/eicher-motors-ltd\/13578#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.fundsindia.com\/blog"},{"@type":"ListItem","position":2,"name":"Eicher Motors Ltd"}]},{"@type":"Article","@id":"https:\/\/fundsindia.com\/blog\/equities\/eicher-motors-ltd\/13578#article","isPartOf":{"@id":"https:\/\/fundsindia.com\/blog\/equities\/eicher-motors-ltd\/13578#webpage"},"author":{"@id":"https:\/\/www.fundsindia.com\/blog\/#\/schema\/person\/78222a5d6aef66b1f386dfa767382656"},"headline":"Eicher Motors Ltd","datePublished":"2018-04-27T10:35:36+00:00","dateModified":"2018-04-27T10:44:20+00:00","mainEntityOfPage":{"@id":"https:\/\/fundsindia.com\/blog\/equities\/eicher-motors-ltd\/13578#webpage"},"wordCount":193,"commentCount":0,"publisher":{"@id":"https:\/\/www.fundsindia.com\/blog\/#organization"},"keywords":["Eicher Motors Ltd"],"articleSection":["Equity Research"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/fundsindia.com\/blog\/equities\/eicher-motors-ltd\/13578#respond"]}]},{"@type":"Person","@id":"https:\/\/www.fundsindia.com\/blog\/#\/schema\/person\/78222a5d6aef66b1f386dfa767382656","name":"Equities Desk","image":{"@type":"ImageObject","@id":"https:\/\/www.fundsindia.com\/blog\/#personlogo","inLanguage":"en-US","url":"https:\/\/secure.gravatar.com\/avatar\/2620d09063050fc426411ab6ea46fc72?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/2620d09063050fc426411ab6ea46fc72?s=96&d=mm&r=g","caption":"Equities Desk"},"sameAs":["http:\/\/www.fundsindia.com"],"url":"https:\/\/www.fundsindia.com\/blog\/author\/equities-desk"}]}},"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.fundsindia.com\/blog\/wp-json\/wp\/v2\/posts\/13578"}],"collection":[{"href":"https:\/\/www.fundsindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fundsindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fundsindia.com\/blog\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fundsindia.com\/blog\/wp-json\/wp\/v2\/comments?post=13578"}],"version-history":[{"count":1,"href":"https:\/\/www.fundsindia.com\/blog\/wp-json\/wp\/v2\/posts\/13578\/revisions"}],"predecessor-version":[{"id":13580,"href":"https:\/\/www.fundsindia.com\/blog\/wp-json\/wp\/v2\/posts\/13578\/revisions\/13580"}],"wp:attachment":[{"href":"https:\/\/www.fundsindia.com\/blog\/wp-json\/wp\/v2\/media?parent=13578"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fundsindia.com\/blog\/wp-json\/wp\/v2\/categories?post=13578"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fundsindia.com\/blog\/wp-json\/wp\/v2\/tags?post=13578"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}