Prabhudas Lilladher has given Buy recommendation for Eicher Motors with a target price of Rs. 3106 in its research report issued on Feb 15, 2022

Prabhudas Lilladher’s research report on Eicher Motors

We cut our FY23/24 consolidated EPS by 4/%7% and maintain ‘BUY’ rating as the retail volumes are set to see recovery with uncertainty over semiconductor shortage resolving and strong pickup in new models. EIM’s 3QFY22 S/A revenue increased by 3% YoY to Rs 28.4bn (PLe: Rs 28.8bn). Realization/volume came in at 19%/-15% YoY. Lower share of exports and inferior product mix led to QoQ decline in realizations. Company has reiterated its aggressive stance towards new product launches with a strong product pipeline over next 18 months. New Classic 350 and Meteor are seeing good traction, though supply challenges impacted order fulfilment over last few months. Company has created an alternative source for chips and expect chip shortage issue to resolve in near term.


We believe next leg of growth to come from new product launches and export market as we believe 1) key markets like Kerala and Chandigarh are saturated and 2) incessant price hikes are impacting vehicle affordability. We assign SoTP based TP of Rs3,106 (v/s Rs 3,398), as we value S/A business at 27x and VECV at 17x on Dec-23E EPS.

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At 15:14 hrs Eicher Motors was quoting at Rs 2,721.95, up Rs 153.40, or 5.97 percent.

It has touched an intraday high of Rs 2,724.40 and an intraday low of Rs 2,493.00.

It was trading with volumes of 60,057 shares, compared to its thirty day average of 32,069 shares, an increase of 87.28 percent.

In the previous trading session, the share closed down 1.08 percent or Rs 28.00 at Rs 2,568.55.

The share touched its 52-week high Rs 2,995.35 and 52-week low Rs 2,303.75 on 27 September, 2021 and 22 April, 2021, respectively.

Currently, it is trading 9.13 percent below its 52-week high and 18.15 percent above its 52-week low.

Market capitalisation stands at Rs 74,423.57 crore.

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