Toll Free No: 1800-103-7212


EICHERMOTOR- A Classic Growth Stock That Peter Lynch Would Love To Have

EICHERMOTOR- A Classic Growth Stock That Peter Lynch Would Love To Have
Research Digest | May 30, 2017

 Last 10 years at a glance:

Motor cycles volumes - 17 times in 10 years (the sell of two-wheelers increased from 3600 to 6000 per month in recent times)

Profits- 30 times in last 10 years – annual Profits rose from Rs. 60 to Rs. 1660 Cr. in FY2017

Shareholders wealth- 100 times in 10 years- Rs 704 Cr Market Cap to current Rs 73500 Cr.

But the history of the brand "Bullet" is not only a 10 years story.

The first Royal Enfield motorcycle was built in 1901 by a company named - The Enfield Cycle Company. Royal Enfield motorcycles had been sold in India since 1949. Currently, Eicher Motor currently owns Royal Enfield Motors.

Considering the high waiting period of 3.5months, the company has recently increased motorcycles production capacity from 7.2 lac p.a to 8.25 lac p.a and has a target to take the production capacity to 9 Lakh units p.a by FY2018-19. The capacity addition will help the company to maintain the Revenue and Profit growth as it has been commanding for last so many years.

The company is presently trading at 39 times FY2018 E EPS. We recommend HOLD though we remain bullish on the stock considering strong management, high margins, great fundamentals, clean balance sheet and strong brand presence.

No Comments Found
leave your comment
Debanjali SenguptaContent

Content Writer

avatar-dummy.jpgAkash BachhawatResearch Analyst
avatar-dummy.jpgDhwanik ShahResearch
Romit_Barat_Romit_Barat.jpgRomit BaratVice President & Sales Head - PMS
Debanjali_Sengupta_debanjali.JPGDebanjali SenguptaContent Writer
Kamal_Kasera_Kamal_Kasera.pngKamal KaseraFixed Income and Currency Researcher
Shailendra_Kumar_Shailendra_Kumar.pngShailendra KumarCo-Founder & CIO
Naveen_Kumar_Dubey_Naveen.jpgNaveen Kumar DubeyFundamental research analyst
Anurag_Arora_Anurag.jpgAnurag AroraFundamental research analyst
Rubi_Burman_Rubi.jpgRubi BurmanNews and IPO Analyst
Krishna_Narnolia_2c2593de-0dc8-4a2a-947b-7bb05917f5da.jpgKrishna NarnoliaCMD & founder of Narnolia Group
Deepak_Kumar_Deepak.jpgDeepak KumarFundamental research analyst
Prakash_Modi_Prakash_Sir.jpegPrakash ModiAVP- Advisory
Vineeta_Sharma_Vineeta_mam.jpgVineeta SharmaHead of Equity Research
Atul_Mishra_Atul.jpgAtul MishraAdvanced Market Researcher
Pratik_Poddar_Pratik.jpgPratik PoddarFundamental Research Analyst
Sandip_Jabuani_Sandip.jpgSandip JabuaniFundamental research analyst
Sakina_Mandsaurwala_Sakina.jpgSakina MandsaurwalaAdvance Market Researcher
avatar-dummy.jpgKK MishraResearcher


current IPO
  • --
upcoming IPO
  • --
Narnolia Research & Advisory Narnolia Trading Platforms Narnolia Online | media Room