Eicher Motors Q3 Results Review - Valuation Leaves Little Upside: Dolat Capital

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Eicher Motors Ltd. posted a weak margin performance in Q3. Ebitda margin contracted by 31 basis points QoQ to 23% due to adverse product mix and price protection for customers for Hunter 350 in Q3. Price increase of Hunter (1.5%) and full benefit softening commodity prices will flow from Q4 and will help in expansion of Ebitda margin.

We expect the grand success of Hunter 350 will help in gaining market share in rural and urban space and will provide much needed boost to small studio outlets volume.

It will also help to accelerate the volume of export (will be used as an entry level bike for the global market).

We retain our positive view on Eicher Motors due to its leadership in the two-wheeler premium segment, strong product pipeline and network expansion.

Over the past few quarters, Eicher’s effort on new product launches, strengthening dealership network and margin recovery is impressive.

Click on the attachment to read the full report:

Dolat Capital Eicher Motors Q3FY23 Result Update.pdf

Read Document

Also Read: Eicher Motors Q3 Results: Profit Soars 62% On Higher Sales, Low Base

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.