Eicher Motors Ltd.
NSE: EICHERMOTEicher Motors Ltd.: A 30-second snapshot
Eicher Motors (NSE: EICHERMOT) trades at ₹7,611 as of the analysis date, up 44.4% over 12 months and 12.0% over the past 3 months, with the price above both the 50-DMA (₹7,203) and 200-DMA (₹7,148). The company reported a trailing PE of 38.1, ROE of 23.8%, and profit margin of 23.6%, with FCF positive in 4 of the available years and an 83% fundamental consistency score. Debt-to-equity stands at 2.05 and is classified as rising.
P/E
38.1
Forward P/E
28.8
ROE
+23.8%
Debt / Equity
2.05
Profit Margin
+23.6%
Div. Yield
+0.9%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
77/100
News
7 headlines · 2 positive · 1 negative
Eicher Motors Gets INR16 Million Demand Order from Customs Office in Kolkata, India - marketscreener.com
marketscreener.com
Eicher Motors Ltd stock (INE066A01021): Royal Enfield May sales rise 15% as investors eye Q4 momentu - AD HOC NEWS
AD HOC NEWS
Eicher Motors shares: Brokerages see up to 29% upside; Royal Enfield demand stays strong despite export uncertainty - Business Today
Business Today
Eicher Motors Limited (NSE:EICHERMOT) Full-Year Results: Here's What Analysts Are Forecasting For This Year - simplywall.st
simplywall.st
Tata Motors, Eicher Motors, M&M, MSIL shares: Will petrol, diesel price hikes hit sales? Target prices - Business Today
Business Today
Recent context
- ·Royal Enfield reported May 2026 sales up 15% year-on-year per company and news disclosures, continuing a multi-quarter volume recovery narrative for the brand.
- ·Business Today (May 2026) reported that multiple brokerages see price upside of up to 29% from then-prevailing levels, citing strong domestic demand despite export uncertainty; export risk from global trade conditions remains a named concern.
- ·A INR 16 million customs demand order received from Kolkata Customs in June 2026 was reported by MarketScreener; management response and appeal status have not been covered in the available news sample.
Strengths
- +Highest quality score among 6 Auto-sector peers (66 vs next-best Bajaj Auto at 55), supported by ROE above 15% in 4 of available years and FCF positive in 4 of available years.
- +Revenue has compounded at 19.1% over 5 years, and the forward PE of 28.8 represents a 24% compression relative to the trailing PE of 38.1, reflecting analysts projecting accelerating earnings.
- +Price is 7.5% below the 52-week high with nearest support at ₹6,978, while RSI of 64.6 remains in neutral territory — no momentum extreme in either direction.
- +Profit margin of 23.6% is high in absolute terms for a two-wheeler and commercial-vehicle manufacturer; Royal Enfield monthly sales data (May +15% per reported headlines) indicates sustained top-line demand.
Weaknesses
- −Debt-to-equity of 2.05 is on a rising trend, making the balance sheet more sensitive to interest-rate or demand-cycle stress; in non-bank Auto peers this level of leverage is above typical norms.
- −Earnings CAGR of 11.5% over 5 years trails revenue CAGR of 19.1% over the same period, indicating that scale has not translated into proportionate profit growth and cost pressures have diluted margins over time.
- −Trailing PE of 38.1 ranks 4th of 6 peers, meaning EICHERMOT is priced at a premium to Bajaj Auto (26.2), Maruti (28.7), and M&M (20.2); multiple compression is a risk if earnings growth disappoints.
- −A customs demand order of INR 16 million from Kolkata Customs (June 2026) introduces a modest but open-ended litigation overhang; the outcome and potential escalation are not yet resolved per available disclosures.
Open questions
- ?Does the 5-year gap between revenue CAGR (19.1%) and earnings CAGR (11.5%) reflect a structural cost issue in Royal Enfield’s expansion, or a transient investment cycle that could reverse as capacity matures?
- ?How sensitive is EICHERMOT’s earnings trajectory to export volumes, given that export uncertainty has been flagged by brokerages as a live risk alongside strong domestic demand?
- ?At a trailing PE of 38.1 with peers ranging from 20 to 43, what earnings growth rate is the current valuation implicitly assuming, and how does that compare to the 5-year historical earnings CAGR of 11.5%?
- ?Given the rising debt-to-equity trend, what is the trajectory of interest coverage and free cash flow generation relative to incremental debt obligations as the company scales its commercial vehicle and international presence?
Peer comparison: Auto
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| EICHERMOT | Eicher Motors Ltd.You're viewing | 38.1 | +23.8% | 66 |
| Industry avg | across 5 peers | 29.5 | +15.9% | 39 |
| BAJAJ-AUTO | Bajaj Auto Ltd. | 26.2 | +28.1% | 55 |
| M&M | Mahindra & Mahindra Ltd. | 20.2 | +18.8% | 52 |
| BOSCHLTD | Bosch Ltd. | 42.8 | +19.4% | 42 |
| MARUTI | Maruti Suzuki India Ltd. | 28.7 | +14.4% | 31 |
| TMPV | Tata Motors Passenger Vehicles Ltd. | — | -1.1% | 16 |
Technical state
Current price
₹7,611.00
SMA 50
₹7,203.16
SMA 200
₹7,148.09
RSI (14)
64.6 (neutral)
From 52w high
-7.5%
1Y return
+44.4%
3M return
+12.0%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumDebt-to-equity of 2.05 is rising per the persistence trend, elevated against Auto-sector peers such as Bajaj Auto and Maruti Suzuki which operate with minimal leverage; earnings grew at 11.5% CAGR over 5 years versus revenue growth of 19.1% CAGR, indicating margin dilution over the compounding period.
- lowTrailing PE of 38.1 ranks 4th of 6 peers in the Auto sector, above Bajaj Auto (26.2), M&M (20.2), and Maruti (28.7), but below Bosch (42.8); EICHERMOT carries a valuation premium to most Auto peers despite a quality score of 66 that leads the peer group.
- lowNews sample covers 7 articles over the analysis window; a INR 16 million customs demand order from Kolkata (June 2026) is the sole negative headline. Sentiment distribution of 2 positive, 4 neutral, 1 negative carries limited statistical weight at this volume.
Cross-section contradictions
- Revenue grew at 19.1% CAGR over 5 years while earnings grew at only 11.5% CAGR, implying cumulative margin dilution — yet the current reported profit margin of 23.56% remains high in absolute terms, leaving the direction of the structural cost-versus-pricing dynamic unresolved.
- Analyst mean rating of 2.08 across 36 analysts (1–5 scale, lower = more constructive) and Royal Enfield May sales up 15% per recent headlines, yet forward PE of 28.8 implies the market has already priced in a meaningful portion of the near-term earnings recovery.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 22 Jun 2026 · rotates through NIFTY 500 every ~5 days