Eicher Motors Limited, an Indian multinational automotive company headquartered in New Delhi, has emerged as a prominent player in the Indian automobile industry and a global leader in middleweight motorcycles. Since its inception in 1982, Eicher Motors has become a trusted name, recognized for its commitment to quality and innovation. As the parent company of Royal Enfield Motors, Eicher Motors has played a pivotal role in shaping the landscape of the motorcycle industry.
With a joint venture alongside Sweden’s AB Volvo, Eicher Motors has further expanded its operations through Volvo Eicher Commercial Vehicles Limited (VECV), engaging in truck and bus manufacturing, auto components business, and technical consulting services. With a rich legacy and a diversified portfolio, Eicher Motors Limited continues to drive forward, delivering excellence in the automotive sector and captivating the hearts of motorcycle enthusiasts worldwide.
As of November 12, 2023, Eicher Motors is trading at ₹ 3,547 with a market cap of ₹ 96,936 Cr.
This article will examine if Eicher Motors is a solid stock to purchase by looking more closely at their share price goal for the years 2023 to 2030. So buckle up and let’s take a voyage through the world of shares of Eicher Motors.
Eicher Motors Q2 FY2024 Earnings: Summary
Eicher Motors recently reported a 54.7% increase in net profit to ₹1,016 crore for the second quarter of the financial year 2023-24, driven by strong sales of Royal Enfield motorcycles and burgeoning demand for premium bikes. This was a significant jump from the ₹657 crore profit in the same quarter of the previous fiscal year.
The auto company’s revenue also rose to a record ₹4,115 crore, compared to ₹3,519 crore in the year-ago period. The Royal Enfield division saw a 13% increase in sales, selling 2,29,496 motorcycles in Q2, up from 2,03,451 in the same period last fiscal year.
Additionally, VE Commercial Vehicles (VECV) achieved its highest-ever quarterly sales, delivering 19,551 units. Despite these robust financial results, Eicher Motors shares closed flat at ₹3,541.80 on the BSE.
Eicher Motors Q1 FY2024 Earnings: Summary
- 50% Rise in Net Profit: Eicher Motors reported a 50% increase in consolidated net profit to ₹918.34 crore in Q1 FY2024, beating analysts’ expectations, primarily due to softer commodity prices and strong sales growth in Royal Enfield.
- Best-ever Performance by Royal Enfield: Royal Enfield recorded its best-ever Q1 performance, with domestic sales growing 31% YoY and contributing to a 22% increase in total volumes to 227,706 units.
- VE Commercial Vehicles’ Strong Growth: Eicher’s joint venture with the Volvo Group, VE Commercial Vehicles (VECV), registered the highest-ever sales and revenue for Q1, contributing to the overall success of the company.
- Positive Share Movement and Margin Growth: Shares of Eicher Motors jumped 1.41% on the BSE before the results were announced, and the company achieved a higher-than-estimated consolidated margin of 25.6%, reflecting solid operational efficiency and financial management.
Below are the trading platforms that you can use to purchase Eicher Motors shares:
- Zerodha
- Upstox
- Groww
- AngelOne
- ICICIDirect
| When | Maximum Price | Minimum Price |
| November 2023 | ₹3,748.63 | ₹3,407.84 |
| December 2023 | ₹3,872.33 | ₹3,520.30 |
In November 2023, the Eicher Motors share price is expected to trade in between a maximum of ₹3,748.63 and a minimum of ₹3,407.84.
However, in the last month of the year, December 2023, we expect Eicher Motors share price target with the maximum price hitting ₹3,872.33 and the minimum at ₹3,520.30.
| When | Maximum Price | Minimum Price |
| January 2024 | ₹3,951.36 | ₹3,435.96 |
| February 2024 | ₹4,032.00 | ₹3,506.09 |
| March 2024 | ₹4,114.29 | ₹3,577.64 |
| April 2024 | ₹3,994.45 | ₹3,473.44 |
| May 2024 | ₹3,935.42 | ₹3,422.10 |
| June 2024 | ₹4,077.10 | ₹3,545.30 |
| July 2024 | ₹4,036.32 | ₹3,509.85 |
| August 2024 | ₹4,197.78 | ₹3,650.24 |
| September 2024 | ₹4,365.69 | ₹3,796.25 |
| October 2024 | ₹4,280.09 | ₹3,721.81 |
| November 2024 | ₹4,408.49 | ₹3,833.47 |
| December 2024 | ₹4,518.70 | ₹3,929.31 |
In January, the maximum price for Eicher Motors is expected to be ₹3,951.36, which should gradually increase each month, reaching its highest point of ₹4,518.70 in December. Meanwhile, the minimum price, which can be seen as a measure of stability in the market, also increased from ₹3,435.96 in January to ₹3,929.31 in December 2024.
| When | Maximum Price | Minimum Price |
| January 2025 | ₹4,609.08 | ₹3,545.44 |
| February 2025 | ₹4,727.26 | ₹3,636.35 |
| March 2025 | ₹4,911.62 | ₹3,778.17 |
| April 2025 | ₹4,815.31 | ₹3,704.09 |
| May 2025 | ₹4,675.06 | ₹3,596.20 |
| June 2025 | ₹4,885.44 | ₹3,758.03 |
| July 2025 | ₹4,789.65 | ₹3,684.34 |
| August 2025 | ₹4,937.78 | ₹3,798.29 |
| September 2025 | ₹5,110.60 | ₹3,931.23 |
| October 2025 | ₹5,243.48 | ₹4,033.44 |
| November 2025 | ₹5,374.57 | ₹4,134.28 |
| December 2025 | ₹5,508.93 | ₹4,237.64 |
The auto market is expected to show remarkable potential for investors throughout 2025.
The year could start with a strong uptrend in January, where the maximum price is expected to reach ₹4,609.08, and the minimum price could be ₹3,545.44.
By December, the maximum price is expected to surge to ₹5,508.93, while the minimum price may also rise to ₹4,237.64.
| Year | Maximum Price | Minimum Price |
| 2026 | ₹5,784.38 | ₹4,049.06 |
| 2027 | ₹6,362.81 | ₹4,453.97 |
| 2028 | ₹8,907.94 | ₹4,453.97 |
| 2029 | ₹7,712.50 | ₹3,856.25 |
| 2030 | ₹10,026.25 | ₹7,018.38 |
Eicher Motors presents a compelling opportunity for investors from 2026 to 2030.
The share price projections for this period are indeed enticing. Starting in 2026, the maximum price is estimated to reach ₹5,784.38, with a minimum of ₹4,049.06, showcasing substantial growth potential.
The subsequent years continue to demonstrate this upward trend, with the maximum price projected to reach ₹10,026.25 by 2030, while the minimum hovers around ₹7,018.38.
These projections illustrate a consistent growth trajectory, making Eicher Motors an attractive prospect for investors seeking substantial returns on their investments. The automotive industry’s promising future only adds to the appeal of this investment opportunity.
Financial Condition of Eicher Motors: Last 5 years
| Eicher Motors Financials |
2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|---|
| Sales (Rs. Crores) | 8,965 | 9,797 | 9,154 | 8,720 | 10,298 | 14,442 |
| Expenses (Rs. Crores) |
6,156 | 6,893 | 6,971 | 6,937 | 8,120 | 10,996 |
| Operating Profit (Rs. Crores) |
2,809 | 2,904 | 2,183 | 1,783 | 2,178 | 3,446 |
| Other Income (Rs. Crores) |
536 | 701 | 572 | 482 | 496 | 908 |
| Interest (Rs. Crores) |
5 | 7 | 19 | 16 | 19 | 28 |
| Depreciation (Rs. Crores) |
223 | 300 | 382 | 451 | 452 | 526 |
| Profit before Tax (Rs. Crores) |
3,116 | 3,297 | 2,355 | 1,798 | 2,203 | 3,800 |
| Net Profit (Rs. Crores) |
1,960 | 2,203 | 1,827 | 1,347 | 1,677 | 2,914 |
| EPS (Rs.) | 71.89 | 80.75 | 66.91 | 49.28 | 61.32 | 106.55 |
| Dividend Payout (%) |
15% | 15% | 19% | 34% | 34% | 35% |
Eicher Motors’ financial performance has shown significant growth and adaptability over the past five years. The company’s sales have consistently increased, growing from 8,965 crores in 2018 to an impressive 14,442 crores in 2023. This upward sales trajectory demonstrates the company’s expanding market presence and growing customer base.
Furthermore, the operating profit, which reflects the company’s efficiency in managing its expenses, also saw substantial growth during this period. It increased from 2,809 crores in 2018 to 3,446 crores in 2023, indicating strong operational performance and financial health.
Despite challenges such as rising expenses and higher depreciation costs, Eicher Motors maintained a healthy profit before tax, which reached 3,800 crores in 2023. This resilience in profitability showcases the company’s ability to navigate economic fluctuations and maintain a strong financial position.
The consistent dividend payouts, which increased from 15% in 2018 to 35% in 2023, highlight Eicher Motors’ commitment to rewarding its shareholders and providing them with a share of the company’s success.
Overall, Eicher Motors appears to be in a solid financial position, offering a promising and financially sound opportunity for investors as it continues to demonstrate growth and financial stability in a competitive market.
Sharekhan by BNP Paribas recommends buying Eicher Motors with a target price of Rs 3650.
Prabhudas Lilladher on Eicher Motors
Prabhudas Lilladher has given a buy call on Eicher Motors. According to the brokerage firm, you can continue buying Eicher Motors shares with a target price of Rs. 4030.
The stock was downgraded by Motilal Oswal to “Neutral,” with a target price of Rs 3,475.
Nuvama rates Eicher Motors as a “Buy,” describing it as a well-run machine with a target of Rs.3,850.
FAQS
What is Eicher Motors’ current stock price?
As of November 12, 2023, Eicher Motors’ stock price is trading at ₹3,547 per share with a market cap of Rs. 96,936 crores.
While no one can predict the future with certainty, analysts expect Eicher Motors’ stock price to continue to grow over the next few years, with a projected share price target of ₹5,508.93 by 2025.
How does Eicher Motors’ financial performance look in recent years?
Eicher Motors has had a strong financial performance in recent years, with steady revenue growth and consistent profitability. In Q2 FY2024, Eicher Motors reported a substantial 54.7% increase in net profit to ₹1,016 crore, buoyed by strong sales in its Royal Enfield division and record revenues of ₹4,115 crore, marking its highest-ever quarterly performance.
Does Eicher Motors pay dividends?
Yes, Eicher Motors pays dividends to its shareholders. In 2023, the company has paid a dividend of 37 INR per share.
Is Eicher Motors a good stock to buy?
Whether Eicher Motors is a good stock to buy depends on your investment goals and risk tolerance. While there are risks associated with investing in any stock, Eicher Motors’ strong financial performance and projected growth make it an attractive option for many investors. However, it is always recommended to do your research and consult with a financial advisor before making any investment decisions.
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Conclusion
With a compounded turnover growth rate of 16% and a compounded profit growth rate of 17% over the past three years, Eicher Motors has shown continuous growth. PAT for the company has also been rising significantly, reaching a high of 2,914 crores in FY2022–23. The share price of Eicher Motors is anticipated to range between a maximum of ₹23,863.93 and a minimum of ₹16,704.75 by the year 2030.
Shares of Eicher Motors may be a wise option for individuals seeking long-term growth prospects because of their solid financial position, which includes an OPM of 20% to 30% and a payout ratio for dividends of about 30%.
The current PE ratio is 27.1, while its highest PE ratio in the last 3 years has been 71. If things go well, Eicher Motors could give a potential return of 2.5 times in the future.
The book value however is just Rs. 582 and the stock is trading at 6.08 times of its book value.
Overall, it is worth thinking about having Eicher Motors shares in one’s portfolio for long-term investment.
What did we learn?
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