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Fundamentals for Eicher Motors Limited
Business Operations:
Sector: Consumer CyclicalIndustry: Auto Manufacturers
Eicher Motors Limited, an automobile company, engages in the manufacture and sale of motorcycles and commercial vehicles in India and internationally. The company designs, develops, manufactures, assembles, and sells two-wheelers; motorcycle accessories; and apparel, such as protective riding apparel, urban casual wear, and riding accessories for men and women. It owns the Royal Enfield motorcycle brand that offers Classic 350, Bullet 350, Meteor 350, Hunter 350, Himalayan 450, Scram 411, Interceptor 650, Continental GT 650, Super Meteor 650, Shotgun 650, and Thunderbird models. The company also 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 and Volvo brands; and connected vehicles under Eicher LIVE. In addition, it provides medium-duty base engines, engineering components, and aggregates. The company was founded in 1901 and is headquartered in Chennai, India.
Revenue projections:
Investors are expected to be cautious with EICHERMOT, as its revenues are projected to fall compared to last year. A decline in revenue often results in a negative impact on profitability, prompting concerns about the company's financial stability and making investors more conservative in their approach.
Financial Ratios:
| currentRatio | 1.902000 |
|---|---|
| forwardPE | 28.626657 |
| debtToEquity | 2.048000 |
| earningsGrowth | 0.115000 |
| revenueGrowth | 0.191000 |
| grossMargins | 0.441730 |
| operatingMargins | 0.210860 |
| trailingEps | 200.590000 |
| forwardEps | 265.486820 |
EICHERMOT's current ratio of 1.902 means the company has enough liquidity to meet its short-term debt obligations. With sufficient cash reserves and current assets, EICHERMOT can comfortably cover its liabilities, reflecting a strong financial outlook.
EICHERMOT's Forward PE is in an attractive range, meaning its stock price aligns well with earnings and isn't inflated. This creates room for growth, making it a solid investment opportunity for those looking to benefit from potential price appreciation.
Eicher Motors Limited's positive earnings and revenue growth signal that the company is expected to expand its business. The company's increasing profits and sales reflect strong financial health, suggesting continued growth and success in the coming periods.
Eicher Motors Limited's positive gross and operating margins indicate healthy profitability. These margins reflect the company's ability to generate income efficiently from its operations, signaling strong financial performance and effective cost management.
EICHERMOT's forward EPS exceeds its trailing EPS, indicating that the company is projected to be more profitable in the current financial year compared to the previous one. This suggests positive growth and improved earnings, signaling an optimistic outlook for EICHERMOT's financial performance.
Price projections:
EICHERMOT's price has consistently been situated near the lower end of expected values. This ongoing trend may reflect investor skepticism about the company's growth potential and overall performance.
Recommendation changes over time:
The analysts' recent buy bias for EICHERMOT indicates strong confidence in the stock's future performance. This could encourage more investors to view EICHERMOT as a worthwhile investment, positioning the company as a top choice for those seeking financial security and long-term growth opportunities.
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