Eicher Motors Limited (EICHERMOT) AI Stock Analysis

• Market Cap: ₹1.98T
• Dividend Yield: 0.97%
• Average Volume (3M): 13.87K
• Price to Earnings (P/E): 38.7
• Beta (1Y): 0.98
• Revenue Growth: 25.37%
• EPS Growth: 19.52%
• Country: IN
• Employees: 5,249
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): 49.90
• Shares Outstanding: 274,299,220
• 10 Day Avg. Volume: 5,987
• 30 Day Avg. Volume: 13,869
• PEG Ratio: 1.69
• Price to Book (P/B): 6.84
• Price to Sales (P/S): 7.78
• P/FCF Ratio: 49.57
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹7,745.00
• Price Target Upside: 7.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ₹7,925.00 ▲(9.81% Upside)

Eicher Motors Limited scores well due to its strong financial performance and positive technical indicators. However, the high P/E ratio suggests potential overvaluation, which slightly offsets the overall score. The absence of earnings call data and corporate events does not impact the score significantly.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates a strong market position and effective business strategies, enhancing its long-term sustainability.

Profitability Margins

Strong profitability margins reflect efficient operations and pricing power, contributing to the company's competitive advantage and financial health.

Cash Flow Management

Efficient cash flow management ensures the company can fund operations, invest in growth opportunities, and maintain financial stability.

Negative Factors

High Equity Ratio

A high equity ratio suggests a conservative capital structure, which may restrict the company's ability to leverage for expansion and growth.

Free Cash Flow Decline

A decline in free cash flow, even if slight, could indicate potential challenges in maintaining cash reserves for future investments and operations.

Limited Earnings Call Data

The absence of earnings call data limits insights into management's strategic direction and future outlook, potentially affecting investor confidence.

Eicher Motors Limited Business Overview & Revenue Model

Company Description

Eicher Motors Limited, an automobile company, manufactures and sells motorcycles and commercial vehicles in India and internationally. It owns the Royal Enfield motorcycle brand that offers Classic, Bullet, Himalayan, Interceptor INT 650, Classic 350, Scram 411 ADV Crossover, Meteor 350, Continental GT 650, and Thunderbird models. In addition, the company designs, develops, manufactures, assembles, and sells two-wheelers, as well as sells related parts and accessories and apparel. It offers through its joint venture, Volvo Eicher Commercial Vehicles Limited, manufactures and sells light and medium duty trucks, heavy duty trucks, and buses under the Eicher brand; Volvo trucks; and engineering components and aggregates. The company was founded in 1948 and is headquartered in Gurugram, India.

How the Company Makes Money

Eicher Motors generates revenue primarily through the sale of motorcycles and commercial vehicles. The company's key revenue stream comes from its Royal Enfield motorcycle division, which has seen significant growth due to increasing demand for mid-sized bikes both domestically and internationally. Additionally, the commercial vehicle segment contributes to earnings through the sale of trucks and buses to various sectors, including logistics and public transport. The company benefits from strategic partnerships with various suppliers and dealers, enhancing its distribution network and market reach. Furthermore, Eicher Motors invests in research and development to innovate and expand its product offerings, which helps in sustaining its competitive edge and driving sales.

Eicher Motors Limited Financial Statement Overview

Summary

Eicher Motors Limited demonstrates strong financial health with significant revenue growth and impressive profitability margins. The company maintains a conservative leverage position and effective asset management, although the high equity ratio may limit growth opportunities. Cash flow remains solid despite a slight decline in free cash flow.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	197.36B	187.33B	164.32B	147.21B	101.96B	86.76B
Gross Profit	88.15B	82.69B	72.96B	63.74B	41.06B	34.53B
EBITDA	48.00B	44.13B	40.93B	36.44B	20.06B	16.65B
Net Income	48.38B	47.34B	40.01B	29.14B	16.77B	13.47B
Balance Sheet
Total Assets	0.00	271.74B	231.28B	191.98B	162.01B	145.59B
Cash, Cash Equivalents and Short-Term Investments	37.53B	37.97B	14.58B	10.50B	31.21B	68.95B
Total Debt	0.00	4.58B	4.19B	2.88B	1.08B	2.19B
Total Liabilities	-212.96B	58.78B	50.82B	42.07B	35.93B	31.21B
Stockholders Equity	212.96B	212.96B	180.46B	149.90B	126.08B	114.38B
Cash Flow
Free Cash Flow	0.00	29.41B	30.87B	21.40B	8.86B	11.59B
Operating Cash Flow	0.00	39.80B	39.06B	28.23B	15.27B	16.91B
Investing Cash Flow	0.00	-24.83B	-30.59B	-24.22B	-9.83B	-16.25B
Financing Cash Flow	0.00	-13.99B	-8.19B	-4.17B	-5.93B	-147.60M

Eicher Motors Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7217.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 7217.25 is above the 20-day moving average (MA) of 7147.79, above the 50-day MA of 7011.60, and above the 200-day MA of 6008.37, indicating a bullish trend. The MACD of 46.94 indicates Positive momentum. The RSI at 57.49 is Neutral, neither overbought nor oversold. The STOCH value of 40.77 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EICHERMOT	76 Outperform	₹1.98T	38.75	―	0.97%	25.37%	19.52%
HEROMOTOCO	72 Outperform	₹1.16T	21.89	―	2.85%	5.18%	27.60%
HYUNDAI	65 Neutral	₹1.88T	32.93	―	0.91%	-0.35%	-4.21%
BAJAJ.AUTO	64 Neutral	₹2.51T	30.18	―	2.33%	11.83%	13.79%
TVSMOTOR	63 Neutral	₹1.74T	66.45	―	0.27%	16.89%	38.92%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TATAMOTORS	60 Neutral	₹1.30T	1.38	―	1.03%	-6.87%	193.82%

Eicher Motors Limited Corporate Events

Eicher Motors Releases Q2 FY ’26 Financial Results Transcript

Eicher Motors Limited announced the release of the transcript from its recent conference call discussing the financial results for the second quarter and half-year ending September 30, 2025. This disclosure is part of the company’s compliance with SEBI regulations and aims to provide transparency to stakeholders regarding its financial performance and strategic direction. The conference call, which followed a board meeting, included insights from key management figures, highlighting the company’s operational and financial strategies moving forward.

Eicher Motors Releases Q2 Financial Results Conference Call Recording

Eicher Motors Limited has released an audio recording of its recent conference call discussing the financial results for the second quarter and half-year ending September 30, 2025. This disclosure, in compliance with SEBI regulations, provides stakeholders with insights into the company’s financial performance and strategic direction.

Eicher Motors to Discuss Q2 Financial Results in Upcoming Conference Call

Eicher Motors Limited has announced a scheduled group conference call on November 13, 2025, to discuss its unaudited financial results for the second quarter and half-year ending September 30, 2025. This call, which follows the company’s board meeting, is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

Eicher Motors Reports Strong October Sales Growth

Eicher Motors Limited reported a significant increase in motorcycle sales for October 2025, with a 13% rise in total units sold compared to the previous year. The growth was driven by a 14% increase in sales of models with engine capacities up to 350cc and a 2% rise in sales of models exceeding 350cc. However, international sales saw a 7% decline. Year-to-date figures show a robust 27% increase in total sales, highlighting strong demand and market performance.

Eicher Motors’ VECV to Manufacture Volvo’s AMT in India

VE Commercial Vehicles, a joint venture between Volvo Group and Eicher Motors, has announced a significant investment of ₹ 544 crore to manufacture Volvo’s 12-speed Automated Manual Transmissions (AMT) in India. This initiative aligns with the Indian government’s ‘Make in India’ vision and is expected to enhance VECV’s market position by leveraging its technical capabilities and addressing customer needs in the commercial vehicle sector. The new facility at Vikram Udyogpuri Integrated Industrial Township in Madhya Pradesh will serve both local and select international markets, marking a strategic milestone in VECV’s growth and modernization efforts.

Royal Enfield Makes 350cc Range More Accessible with GST Benefits

Royal Enfield, a division of Eicher Motors Limited, announced a significant price reduction on its entire 350cc motorcycle range, passing the full GST benefit to customers. This move, following recent GST reforms, aims to make Royal Enfield motorcycles more accessible, particularly to first-time buyers, and is expected to bolster the two-wheeler industry in India. The price reduction reflects Royal Enfield’s commitment to offering a pure motorcycling experience and is likely to enhance its market positioning by attracting a broader community of riding enthusiasts.