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Eicher Motors Limited (IN:EICHERMOT)
:EICHERMOT
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Eicher Motors Limited (EICHERMOT) AI Stock Analysis

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IN:EICHERMOT

Eicher Motors Limited

(EICHERMOT)

Rating:69Neutral
Price Target:
₹5,985.00
▼(-1.91% Downside)
Eicher Motors boasts strong financial performance with significant revenue growth and high profitability margins. However, technical indicators point to bearish momentum, and the high P/E ratio suggests potential overvaluation. The lack of significant corporate events or earnings call insights further consolidates the current assessment.

Eicher Motors Limited (EICHERMOT) vs. iShares MSCI India ETF (INDA)

Eicher Motors Limited Business Overview & Revenue Model

Company DescriptionEicher Motors Limited (EICHERMOT) is a leading Indian multinational corporation headquartered in Gurugram, India. The company is primarily engaged in the automotive industry, with a strong focus on manufacturing motorcycles and commercial vehicles. Eicher Motors is best known for its iconic motorcycle brand, Royal Enfield, which enjoys a cult following worldwide. The company also has a joint venture with Sweden's Volvo Group, known as VE Commercial Vehicles Limited, which manufactures and sells commercial vehicles such as trucks and buses.
How the Company Makes MoneyEicher Motors Limited generates revenue through multiple streams, primarily focusing on its two-wheelers and commercial vehicles segments. The company earns a significant portion of its income from the sale of Royal Enfield motorcycles, which are marketed both domestically and internationally. This includes various models ranging from classic to modern motorcycles, catering to different consumer preferences. Additionally, through its joint venture with Volvo Group, Eicher Motors produces and sells commercial vehicles under the VE Commercial Vehicles Limited banner, contributing to its revenue. The company also benefits from after-sales services, spare parts, and accessories sales, which enhance its earnings. Furthermore, strategic partnerships and collaborations, such as the one with Volvo, aid in expanding its product range and market reach, thus bolstering its revenue streams.

Eicher Motors Limited Financial Statement Overview

Summary
Eicher Motors Limited demonstrates strong financial health with significant revenue growth, high profitability margins, and efficient cash management. The low debt-to-equity ratio and high equity ratio indicate financial stability, though the conservative capital structure might limit growth opportunities.
Income Statement
88
Very Positive
Eicher Motors Limited has shown strong revenue growth, with a significant increase from 162.34 billion to 185.38 billion in the latest year, a growth rate of approximately 14.2%. The company maintains a high gross profit margin of 34.8% and a net profit margin of 25.5%, indicating strong profitability. EBIT and EBITDA margins are also robust at 21.5% and 36.2%, respectively, underscoring efficient operations. Overall, the income statement reflects a well-performing company with strong growth and profitability.
Balance Sheet
80
Positive
The balance sheet of Eicher Motors is strong, with a low debt-to-equity ratio of 0.02, indicating conservative leverage. The equity ratio is high at 78.3%, demonstrating financial stability and effective asset management. Return on equity stands at 22.2%, which is a healthy indicator of profitability for shareholders. However, the company's high equity ratio may suggest a conservative capital structure, potentially limiting growth opportunities.
Cash Flow
85
Very Positive
Eicher Motors exhibits a solid cash flow position, with a free cash flow of 29.41 billion. The free cash flow has decreased slightly compared to the previous year, but the company maintains a strong operating cash flow to net income ratio of 0.84, indicating efficient cash generation. The free cash flow to net income ratio is also robust at 0.62, highlighting the company's ability to generate cash relative to its net income. Overall, the cash flow statements suggest efficient cash management and operational effectiveness.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue189.91B185.38B162.34B141.76B101.27B86.94B
Gross Profit76.21B59.26B70.98B59.64B41.71B34.71B
EBITDA64.69B67.17B53.98B40.34B26.11B22.34B
Net Income47.34B47.34B40.01B29.14B16.77B13.47B
Balance Sheet
Total Assets271.74B271.74B231.28B191.98B162.01B145.59B
Cash, Cash Equivalents and Short-Term Investments39.79B37.97B14.58B10.50B31.21B68.95B
Total Debt4.58B4.58B4.19B2.88B1.08B2.19B
Total Liabilities58.78B58.78B50.82B42.07B35.93B31.21B
Stockholders Equity212.96B212.96B180.46B149.90B126.08B114.38B
Cash Flow
Free Cash Flow0.0029.41B30.87B21.65B8.86B11.59B
Operating Cash Flow0.0039.80B39.06B28.23B15.27B16.91B
Investing Cash Flow0.00-24.83B-30.59B-24.22B-9.83B-16.25B
Financing Cash Flow0.00-13.99B-8.19B-4.17B-5.93B-147.60M

Eicher Motors Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6101.30
Price Trends
50DMA
5628.86
Positive
100DMA
5498.03
Positive
200DMA
5220.24
Positive
Market Momentum
MACD
153.32
Negative
RSI
74.43
Negative
STOCH
77.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:EICHERMOT, the sentiment is Positive. The current price of 6101.3 is above the 20-day moving average (MA) of 5804.97, above the 50-day MA of 5628.86, and above the 200-day MA of 5220.24, indicating a bullish trend. The MACD of 153.32 indicates Negative momentum. The RSI at 74.43 is Negative, neither overbought nor oversold. The STOCH value of 77.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:EICHERMOT.

Eicher Motors Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
₹1.02T20.20
3.24%3.30%23.39%
75
Outperform
₹2.41T31.74
2.43%12.27%-4.25%
71
Outperform
₹2.00T36.20
0.85%-2.62%-11.26%
71
Outperform
₹2.46T11.62
0.90%-1.08%-34.23%
69
Neutral
₹1.67T34.57
1.15%15.21%15.48%
61
Neutral
$17.64B14.17-5.23%3.04%1.43%-15.11%
59
Neutral
₹1.56T65.27
0.31%14.06%39.28%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:EICHERMOT
Eicher Motors Limited
6,101.30
1,252.65
25.84%
IN:BAJAJ.AUTO
Bajaj Auto Limited
8,630.60
-2,217.96
-20.44%
IN:HEROMOTOCO
Hero Motocorp Limited
5,087.30
-270.78
-5.05%
IN:HYUNDAI
Hyundai Motor India Limited
2,459.00
580.50
30.90%
IN:TATAMOTORS
Tata Motors Limited
668.80
-414.38
-38.26%
IN:TVSMOTOR
TVS Motor Company Limited
3,277.80
498.69
17.94%

Eicher Motors Limited Corporate Events

Eicher Motors Releases Q1 2025 Financial Results Conference Call Recording
Jul 31, 2025

Eicher Motors Limited announced the availability of an audio recording from their recent conference call discussing the financial results for the first quarter ended June 30, 2025. This announcement is part of their compliance with SEBI regulations, and the recording is accessible on their website, providing stakeholders with insights into the company’s financial performance and strategic direction.

Eicher Motors Releases Q1 FY 2026 Investor Presentation
Jul 31, 2025

Eicher Motors Limited has released an investor presentation in compliance with Regulation 30 of the SEBI (LODR) Regulations, 2015. This announcement is part of the company’s efforts to maintain transparency with its stakeholders and provide insights into its financial performance and strategic direction for the first quarter of the fiscal year 2026.

Eicher Motors Announces 43rd AGM and Annual Report Availability
Jul 28, 2025

Eicher Motors Limited has announced the dispatch of letters to shareholders regarding the availability of the Notice for the 43rd Annual General Meeting (AGM) and the Integrated Annual Report for FY 2024-25. The AGM is scheduled for August 21, 2025, and will be conducted via video conferencing. This move ensures shareholders are informed and can access important company documents online, reflecting Eicher Motors’ commitment to transparency and stakeholder engagement.

Eicher Motors to Hold 43rd AGM via Video Conferencing, Announces Dividend
Jul 11, 2025

Eicher Motors Limited has announced that its 43rd Annual General Meeting (AGM) will be held on August 21, 2025, via video conferencing. The company has set August 1, 2025, as the record date for determining shareholder eligibility for a dividend payment of Rs. 70 per equity share, pending shareholder approval. This move reflects the company’s adaptation to digital methods for shareholder engagement and its commitment to maintaining shareholder value through dividend distribution.

Eicher Motors’ Subsidiary Faces GST Demand Notice
Jul 11, 2025

Eicher Motors Limited announced that its subsidiary, VE Commercial Vehicles Limited, has received a demand cum show cause notice from the Commissioner of CGST & Central Excise in Ujjain, Madhya Pradesh. The notice pertains to alleged contraventions of the CGST Act, 2017, for the fiscal year 2017-18, demanding GST payment of Rs. 168.19 Crores with penalties and interest. The company, however, believes the demand is not maintainable and is assessing the situation to respond within the stipulated time. Eicher Motors does not foresee any significant impact on its financials or operations due to this notice.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 30, 2025