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Hold Eicher Motors; target of Rs 2480: ICICI Direct

ICICI Direct recommended hold rating on Eicher Motors with a target price of Rs 2480 in its research report dated May 15, 2022.

May 16, 2022 / 04:21 PM IST
 
 
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ICICI Direct's research report on Eicher Motors


Eicher Motors (EML) is the market leader in the >250 cc premium motorcycle segment (market share ~90%+) through its aspirational models under the Royal Enfield (RE) brand, such as Bullet, Classic, Interceptor among others • Via its JV with Volvo i.e., VECV (EML has 54.4% stake), the company has a presence in the CV space as well (6.6% FY22 market share) • Strong net cash positive b/s with healthy return ratios metrics.


Outlook


We retain our HOLD on EML and await better monthly volume prints of RE. We value EML at Rs 2,480 on SOTP basis; assigning 23x PE to RE business & 20x PE to VECV business on FY24E numbers.


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first published: May 16, 2022 04:21 pm
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