Hold Eicher Motors; target Rs 3700: Nirmal Bang
Brokerage house Nirmal Bang has recommended hold rating on Eicher Motors (EML) with a price target of Rs 3700 in its August 12, 2013 research report.
August 20, 2013 / 17:51 IST
Nirmal Bang's report on Eicher Motors (EML)
"Eicher Motors (EML) reported results marginally above expectations reflecting strong performance in the Standalone business - Royal Enfield (RE). The performance of VECV was good considering the current slowdown in the CV industry. The company was able to sustain higher levels of EBITDA margins for Royal Enfield for the second consecutive quarter at 17.8 percent. Consolidated margins were broadly flat sequentially. However, lower other income and higher depreciation led to sequential decline in bottom line which was partially offset by lower tax rate.""EML has a strong balance sheet with a credible management and consolidated cash per share of Rs 804 cr (CY12) which continues to add to our confidence in the company. At CMP the stock is trading at P/E of 19.66x CY13E and 15.20x CY14E. Our current target price of Rs 3,700 offers upside of 11.9 percent from current levels. We continue to maintain our positive outlook on the stock and suggest to HOLD the stock and accumulate on any decline from a long term perspective for target price of Rs 3700," says Nirmal Bang research report.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. 
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