Motilal Oswal has given Buy recommendation for Eicher Motors recommended buy rating on the stock with a target price of Rs 3200 in its researc with a target price of Rs. 3200 in its research report issued on May 27, 2021

Motilal Oswal’s research report on Eicher Motors

Eicher Motors (EIM)’s 4QFY21 performance was in-line, supported by good volume recovery in both RE and VECV. Despite cost inflation, EBITDA margins per unit were stable QoQ. Good response to Meteor, upcoming launches of the new Classic, and normalized production would support RE volume recovery going forward. VECV is also firmly on the recovery path.

Outlook

We cut FY22E consol. EPS by 7%, accounting for the COVID impact on volumes and commodity inflation, while maintaining FY23E earnings estimates. Maintain Buy, with TP of INR3,200 (Mar’23 SOTP).

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