Views on Eicher Motors 3QCY2015 Results: Angel Broking

Views of Mr. Bharat Gianani (Sr. Research Analyst - Automobile, Angel Broking) on Eicher Motors 3QCY2015 Results:

"Eicher Motors 3QCY2015 revenues were broadly in line with our estimates. Revenues grew strongly 37% yoy to INR 3,123 cr coming in line with our estimates of INR 3,105 cr. Royal Enfield business topline grew 58% YoY driven mainly by volume growth. The commercial vehicle business revenues grew 25% YoY to INR 1821.3 cr driven mainly by 18% volume growth due to improvement in MHCV sales. Consolidated Operating margins at 15.8% improved 240 bp YoY and were in line with our estimates of 16.1%. 2W business reported robust margin of 27.7% (v/s 27.5% expected) driven by operating leverage. The commercial vehicle business margins improved marginally 40 bp yoy to 7.3% (v/s 7.8% expected) due to operating leverage. Higher taxation marginally impacted the profitability. Net Profit at INR 255 cr was broadly in line with our estimates of INR 265 cr. We maintain BUY rating on the stock."

Shares of EICHER MOTORS LTD. was last trading in BSE at Rs.16692.75 as compared to the previous close of Rs. 17693. The total number of shares traded during the day was 17139 in over 6265 trades.

The stock hit an intraday high of Rs. 17980 and intraday low of 16448.15. The net turnover during the day was Rs. 292601354.

Source : Equity Bulls

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