Mar'25 View on Eicher Motors Ltd

Eicher Motors Limited, incorporated in 1982, is the listed company of the Eicher Group in India and a leading player in the Indian automobile industry and the global leader in middleweight motorcycles. Eicher has a joint venture with Sweden’s AB Volvo to create Volvo Eicher Commercial Vehicles Limited (VECV). VECV is engaged in truck and bus operations, auto components business, and technical consulting services business. After falling from high of 5,600 the stock is consolidating at 5000 level and looks to further weaken due to following inputs • Revenues were 2% below our estimates; lower-than-expected ASPs. • EBITDA margin was 24.2% (-190 bps yoy, -130 bps qoq), 170 bps below our estimates. • Consolidated net profit came in at Rs1,171 cr, 3% below estimates. • Q3FY25 consolidated EBITDA came in 9% below our expectations. • Weaker model mix and higher launch cost drive a miss. • The company’s strategy shifts toward volume growth over EBITDA margins.