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Eicher Motors
BSE Announcements on Eicher Motors
Posted by :
MMB MessengerTracked by: 0 Boarder
Eicher Motors Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on August 21, 2008, to consider enhancing the limit of investment of surplus funds in the mutual funds duly approved by SEBI....
Bad results
Posted by : psgsTracked by: 0 Boarder
dear totalview,
I appreciate your true, honest and frank reply my friend.
some people are very bullish on this stock. take ashok leyland, they have the problem of scale and capacity. take M&M....there is nothing special...all their models are reporting lower sales. Tractor business is one old type of business models....they are just surviving and there is nothing interesting in M&M. take Maruti, its fairly valued compared to other auto stocks. Take Bajaj and Hero Honda, they are under performers. Take tata motors......which corrected hugely after Jaguar and Land rover brands acquisition. but one has to see the hidden value in Tata Motors. this can give good returns for the long term.
tell me, if 691.68 is the buy back price, why the stock is quoting at current low levels?
swamy.
...
In reply to:
Bad results
Posted by :
totalview
Frankly speaking I have not gone into Tata Motors details. However, Eicher Motors now no value unlocking involved. Now almost everything is on board. JV has been formed, govt approval for JV investment by CCEA is in place and management is on record for buy back @ Rs.691.68 per share for 13% equity of public shareholders. Now it\\`s a question of market taking it sooner or later. No decisions for value unlocking to be taken by management except Royal Enfield getting a JV and a financial arm for financing of CVs in JV with volvo. However, I shall go through Tata Motors details. Appreciate if u could provide some meaningful details. Cheers !!!!!! 
Bad results
Posted by : totalviewTracked by: 0 Boarder
Frankly speaking I have not gone into Tata Motors details. However, Eicher Motors now no value unlocking involved. Now almost everything is on board. JV has been formed, govt approval for JV investment by CCEA is in place and management is on record for buy back @ Rs.691.68 per share for 13% equity of public shareholders. Now it\\`s a question of market taking it sooner or later. No decisions for value unlocking to be taken by management except Royal Enfield getting a JV and a financial arm for financing of CVs in JV with volvo. However, I shall go through Tata Motors details. Appreciate if u could provide some meaningful details. Cheers !!!!!! ...
In reply to:
Bad results
Posted by : psgs
if you calculate the unlocking of value in Tata Motors....then u will get lost my friend. Tata motors have so many JV's and subsidiaries. they will list some of them. there is going to be huge unlocking of value in Tata Motors which is multiple times bigger than Eicher motors value.
didn't you smell that?
swamy.
Bad results
Posted by : psgsTracked by: 0 Boarder
if you calculate the unlocking of value in Tata Motors....then u will get lost my friend. Tata motors have so many JV's and subsidiaries. they will list some of them. there is going to be huge unlocking of value in Tata Motors which is multiple times bigger than Eicher motors value.
didn't you smell that?
swamy.
...
In reply to:
Bad results
Posted by : totalview
This is one stock which offers value buying. It\\`s a cash rich company. Market cap is just 755 crores and after transfer of CV and Engg. division to JV volvo it will have cash around that level. Hold on !!! JV shares of 54.5% which is valued more Rs.2200 crores is virtually free. Besides, there is a buy back offer in the pipeline. Buy back itself will @ Rs.691.68 per share for 13% of the equity. Volvo itself has invested at the same price. They have a strategy to increase the market share tremendously. Volvo is a formidable player in the international market and they would not allow JV to collapse. Besides, a financial arm (JV)with volvo to finance the commercial vehicles is in the pipeline. Please note that Eicher Motors is cash rich company and all its assets are in cash except Royal Enfield division and 54.5% share in JV. Money invested in long term capital bonds out of sale of Tractor Division three years back will be available in November 2008 (Rs.285 crores). Now u decide whether it is a sell or buy. Of course, negative point is that with overall economy a bit slow CV business will be impacted but that is for all CV manufacturers. Otherwise - future is extremely bright. Iceing on the cake - Management is 100% fair and transparent. Please go through their website (EICHERWORLD). Cheers !!!!!!!
Bad results
Posted by : totalviewTracked by: 0 Boarder
This is one stock which offers value buying. It\\`s a cash rich company. Market cap is just 755 crores and after transfer of CV and Engg. division to JV volvo it will have cash around that level. Hold on !!! JV shares of 54.5% which is valued more Rs.2200 crores is virtually free. Besides, there is a buy back offer in the pipeline. Buy back itself will @ Rs.691.68 per share for 13% of the equity. Volvo itself has invested at the same price. They have a strategy to increase the market share tremendously. Volvo is a formidable player in the international market and they would not allow JV to collapse. Besides, a financial arm (JV)with volvo to finance the commercial vehicles is in the pipeline. Please note that Eicher Motors is cash rich company and all its assets are in cash except Royal Enfield division and 54.5% share in JV. Money invested in long term capital bonds out of sale of Tractor Division three years back will be available in November 2008 (Rs.285 crores). Now u decide whether it is a sell or buy. Of course, negative point is that with overall economy a bit slow CV business will be impacted but that is for all CV manufacturers. Otherwise - future is extremely bright. Iceing on the cake - Management is 100% fair and transparent. Please go through their website (EICHERWORLD). Cheers !!!!!!!...
In reply to:
Bad results
Posted by : psgs
book profits. switch to Tata Motors.
swamy.
Bad results
Posted by : totalviewTracked by: 0 Boarder
provided sensex is 11000 !!!!!...
In reply to:
Bad results
Posted by :
vbk76
Target 200 within a month
Bad results
Posted by : vbk76Tracked by: 0 Boarder
Target 200 within a month...
chance of Rs.30 dividend
Posted by : overmarsTracked by: 0 Boarder
this is an assumption and possible divident that eicher is enetitled to pay no non-promoters. how
1: As part of JV, volvo wil pay noncompete fee of 39.4 crores each to promoters and non-promoters.
2: So non-promter compete fee has to be paid to retail investors.
3: Total shares of non-promoters - 10743018
4: Non - compete fee for non-promoters - 39.4 crores
Likely dividend = 394000000/10743018 = 36.30 (all excluding tax)
So after tax, there can be didident of atleast Rs:30
This woould only happen after volvo pays the whole money.
...
CCEA APPROVAL FOR $ 275 MILLION INVESTMNT
Posted by : totalviewTracked by: 0 Boarder
I hardly see any s cope for 400+ by next week. But it is likely that downside is limited and bottom has been formed. We should also keep in mind that after all formalities are completed, there is a likelyhood of buy-back from public category of shareholders(excluding promoters)at a very good price of Rs.691.68 which will give a boost to share price. It\\`s clearly a hold for next three months or till the buy-back offer comes into effect. One can also consider buying @ CMP or at declines as the risk-reward ratio is very favourable for buyers. Further, price will also be effected favourably in case of crude prices going downward. Cheers !!!!! ...
In reply to:
CCEA APPROVAL FOR $ 275 MILLION INVESTMNT
Posted by : sanjdutt
Price should zoom now. We may see price 400+ by next week. Any comments?
CCEA APPROVAL FOR $ 275 MILLION INVESTMNT
Posted by : sanjduttTracked by: 0 Boarder
Price should zoom now. We may see price 400+ by next week. Any comments?
...
In reply to:
CCEA APPROVAL FOR $ 275 MILLION INVESTMNT
Posted by : Guest
Hi,
Thanks for the valuable info.Does this mean the share price will zoom soon so that it can bring smiles to investors who bought at higher prices (like 400-500rs)?
Thanks,
Vish.
CCEA APPROVAL FOR $ 275 MILLION INVESTMNT
Posted by : GuestTracked by: 0 Boarder
Hi,
Thanks for the valuable info.Does this mean the share price will zoom soon so that it can bring smiles to investors who bought at higher prices (like 400-500rs)?
Thanks,
Vish....
In reply to:
CCEA APPROVAL FOR $ 275 MILLION INVESTMNT
Posted by : totalview
FINALLY, today Cabinet Committee on Economic Affairs(CCEA)has approved U.S.$ 275 MILLION investment by Volvo in the JV with Eicher Motors. Here is the PIB release by Govt. of IndiaProposal of M/s. Aktiebolaget Volvo (publ), Sweden to invest 45.6% in the paid up equity share capital of M/s. Eicher Motors India Ltd.
--------------------------------------------------------------------------------
15:3 IST
The Cabinet committee on Economic Affairs today gave its approval to M/s. Aktiebolaget Volvo (publ), Sweden to invest 45.6% (45,60,000 equity shares) in the paid up equity share capital in a new joint venture company, Eicher Motors India Limited (EMIL) incorporated by Eicher Motors Limited (Eicher) on 7.3.2008 for carrying on the commercial vehicle business (along with related components and design services business), which is to be transferred by Eicher to EMIL and demerger of sales and distribution network of Volve India Pvt. Ltd. (Volvo India) in to EMIL. Eicher shall be holding the balalnce 54.4% equity of the company and shall act as an operating-cum-holding company. The cash investment by M/s. Aktiebolaget Volvo (Publ), Sweden together with its subsidiaries/affiliates will amount to US$ 275 million.
The approval will be subject to the following conditions:
(i) Compliance with the RBI/SEBI guidelines;
(ii) Compliance with the provisions of Press Note 1 (2005 series) and Press Note 9 (1999 series) and
(iii) Approval of the relevant High Courts for the demerger of distribution business of Volve India.
As a result, FDI amounting to US $ 275 million will be received in the country.
.
CCEA APPROVAL FOR $ 275 MILLION INVESTMNT
Posted by : totalviewTracked by: 0 Boarder
FINALLY, today Cabinet Committee on Economic Affairs(CCEA)has approved U.S.$ 275 MILLION investment by Volvo in the JV with Eicher Motors. Here is the PIB release by Govt. of IndiaProposal of M/s. Aktiebolaget Volvo (publ), Sweden to invest 45.6% in the paid up equity share capital of M/s. Eicher Motors India Ltd.
--------------------------------------------------------------------------------
15:3 IST
The Cabinet committee on Economic Affairs today gave its approval to M/s. Aktiebolaget Volvo (publ), Sweden to invest 45.6% (45,60,000 equity shares) in the paid up equity share capital in a new joint venture company, Eicher Motors India Limited (EMIL) incorporated by Eicher Motors Limited (Eicher) on 7.3.2008 for carrying on the commercial vehicle business (along with related components and design services business), which is to be transferred by Eicher to EMIL and demerger of sales and distribution network of Volve India Pvt. Ltd. (Volvo India) in to EMIL. Eicher shall be holding the balalnce 54.4% equity of the company and shall act as an operating-cum-holding company. The cash investment by M/s. Aktiebolaget Volvo (Publ), Sweden together with its subsidiaries/affiliates will amount to US$ 275 million.
The approval will be subject to the following conditions:
(i) Compliance with the RBI/SEBI guidelines;
(ii) Compliance with the provisions of Press Note 1 (2005 series) and Press Note 9 (1999 series) and
(iii) Approval of the relevant High Courts for the demerger of distribution business of Volve India.
As a result, FDI amounting to US $ 275 million will be received in the country.
....
Volvo JV
Posted by : sanjduttTracked by: 0 Boarder
Thnx a lot. Any idea when will the CCEA meeting hold?...
In reply to:
Volvo JV
Posted by : totalview
Investment in JV by Volvo is likely to be approved very shortly in the next CCEA meeting. It got stuck up at the govt. level because of political movements. Further, there is likely to be a buy back offer @ 691/- to public shareholders. It is likely to have beneficial impact on the share price. Worst is already discounted in the shareprice e.g.higher oil price, slowdown in the economy etc. Any trigger on JV approval, buyback offer, lowering of oil prices will drive the share price sharply upwards. Cheers !!!!!
Volvo JV
Posted by : totalviewTracked by: 0 Boarder
Investment in JV by Volvo is likely to be approved very shortly in the next CCEA meeting. It got stuck up at the govt. level because of political movements. Further, there is likely to be a buy back offer @ 691/- to public shareholders. It is likely to have beneficial impact on the share price. Worst is already discounted in the shareprice e.g.higher oil price, slowdown in the economy etc. Any trigger on JV approval, buyback offer, lowering of oil prices will drive the share price sharply upwards. Cheers !!!!!...
In reply to:
Volvo JV
Posted by : totalview
Investment in JV by Volvo is likely to be approved very shortly in the next CCEA meeting. It got stuck up at the govt. level because of political movements. Further, there is likely to be a buy back offer @ 691/- to public shareholders. It is likely to have beneficial impact on the share price. Worst is already discounted in the shareprice e.g.higher oil price, slowdown in the economy etc. Any trigger on JV approval, buyback offer, lowering of oil prices will drive the share price sharply upwards. Cheers !!!!!
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