Moneycontrol
Get App
Last Updated : Feb 13, 2019 04:02 PM IST | Source: Moneycontrol.com

Buy Eicher Motors; target of Rs 23,960: Motilal Oswal

Motilal Oswal is bullish on Eicher Motors has recommended buy rating on the stock with a target price of Rs 23,960 in its research report dated February 11, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Motilal Oswal's research report on Eicher Motors


Consol. revenue grew 3% YoY to INR23b. Adj. PAT increased 0.4% YoY (-5.9% QoQ) to INR5.3b. EBITDA margin shrank 220bp YoY (-130bp QoQ) to 29%. For 9MFY19, revenue/EBITDA/PAT grew 13.5%/10.3%/9.4% YoY. RE's net realization improved 5.4% QoQ (+10.1% YoY) to INR121k, led by a favorable mix and a price increase for ABS/ disc brakes. EBITDA margin contracted 220bp YoY (-110bp QoQ) to 29.5% due to the launch expense related to 650cc Twins, negative operating leverage and RM inflation. Adj. PAT increased 6% YoY to INR5b. VECV's realizations grew 4.9% QoQ (+4.3% YoY) to INR1.66m. EBITDA margin shrank 210bp YoY (-240bp QoQ) to 6.6%, led by higher discounts and a weak mix. PAT grew 43% YoY (-46.5% QoQ) to INR760m.


Outlook


We cut our FY20/21 consol. EPS estimate by 2-3%, as we cut VECV earnings by 8%/9% to factor in the weak operating performance. Maintain Buy with a TP of INR23,960 (Mar'21E SOTP-based).


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Published on Feb 13, 2019 04:02 pm
More From
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant