Shares of Eicher Motors will give ex-dividend on August 12. should you buy

On BSE, Eicher shares settled up by 3,175 each 20.45 or 0.65%. Earlier on Thursday, the company touched a new 52-week high of Rs. 3,260.85 each. The market cap of the company is approx. 86,813.66 crores.

Eicher has announced Dividend of The face value of Rs 21 per equity share for FY 2012 is Re 1 each. The company has announced the closure of its members’ register and sharing of transfer books from August 18 to August 24, 2022. That said, its shares will turn ex-dividend on August 12, 2022.

In general terms, when a company makes a profit, they share a portion of the surplus with shareholders who own a portion of their shares and this is called a “dividend”. Meanwhile, the ex-dividend date for the stock is the business day prior to the record date for declaring shareholders eligible for payment. This also means that investors who buy stock on or after the ex-dividend date will not be eligible for the dividend declared by the company for a particular financial year.

During Q1FY23, Eicher’s total revenue from operations was 3,397 crore as compared to 72% 1,974 crore in the corresponding quarter of the financial year 2021-22. Meanwhile, EBITDA was at 831 crore as compared to 363 crore in the same quarter of the previous financial year. profit after tax was 611 crore as compared to profit of 237 crore during the same period last year.

Also, in Q1FY23, Royal Enfield 186,032 motorcycles sold — a 52% increase from 122,170 motorcycles sold in the same period in FY 2021-22.

Siddharth Lal, Managing Director, Eicher Motors Limited said, “We have an excellent quarter to start this financial year. Our international volumes have registered a steady growth with a growth of over 60% over the previous year. We recorded the highest ever quarterly revenue and EBITDA based on record international sales volume. We recently launched the exciting new, neo-retro styled roadster, the Hunter 350.”

Moving on, B. Govindarajan, CEO – Royal Enfield and Whole Time Director, EML, said, “With products like the Scrum 411 and Hunter 350, we are creating new variants to experience pure motorcycles. With the upcoming festive season, the market is booming. and consumer sentiment, and improving supply chain and part availability, we are confident of sustained and sustained growth for Royal Enfield in the coming quarters.”

Should you invest in Eicher shares?

Mansi Lal, Research Associate at Prabhudas Lilladher said, “Eicher delivered a positive surprise with a consolidated EBITDA margin of 24.5% (+80bps QoQ) as against our estimate of 23.2%. RE recently launched the Hunter 350, whose It is expected to come on board. New customers due to its attractive pricing (~ 1.5 lakh for the factory model) and differentiated product offering (light in weight, non-cruiser, urban fit). It delivered its highest ever quarterly exports of ~29k units in 1QFY23 (versus ~25k in 4QFY22). We expect the export business to grow significantly in the next few years (we generate a volume CAGR of 30% in FY22-24E) led by channel expansion and increase in market share. With new model launches in the pipeline, commodity cost moderation, and chip supply stabilizing, we expect operating leverage to begin rolling out. In VECV, demand growth is being seen led by a cyclical recovery.”

Lal said, “We continue to buy on Eicher Motors as we anticipate (1) volume growth from new product launches, (2) increasing export volume from channel expansion and market share gains and (3) operating leverage as Margin expansion (we build in) ~380bps EBITDAM expansion on FY22-24E. We increase our EPS estimates by 2/5% for FY23/24 and assign a revised SoTP based TP 3,400 (factor in the first positive outlook 28x FY24E EPS versus 27x for the standalone business and 18x for VECV).”

In addition, ICICI Direct Research analysts Shashank Kanodia and Raghavendra Goyal upgraded their outlook on Eicher. Both said, “With attractive pricing for the Hunter 350 (the lowest price offered by RE) 1.5 lakh/unit, ex-showroom), network optimization and growing global presence, we expect RE volumes to grow at a CAGR of 22% in FY22-24E,” adding, “In line with the CV cyclical surge domestically, Also, CV volumes in VECVs are expected to grow at a CAGR of 21 per cent in FY22-24 amid increasing market share.”

On an overall consolidated basis, analysts at ICICI Direct said, “We expect net sales to grow at a CAGR of 22.1%. With operating leverage gains and stable input costs, margins improve ROCE to 26.1% by ~21%. has been placed on. by FY24E.”

“We upgrade EML from hold to buy amid affordable offerings in the premium segment (Hunter 350), which should support volume growth in FY22-24E,” said analysts at ICICI Direct. They have set a target price of 3,650 on the company.

On the other hand, analysts at Nirmal Bang said in their note, “The company recorded its highest ever sales in the international market in 1QFY23. We expect exports to exceed 17% CAGR in FY22-24E, the new This will be aided by market penetration and increase in market share in existing markets. We expect exports to be one of the key growth drivers for Eicher in the medium term. Further, we also expect VECV to benefit from CV upcycle. Despite the improvement in volumes, we expect margin expansion to be constrained by changes in product mix and difficulty in fully passing on the impact of inflation to consumers.”

Further, analysts at Nirmal Bang said, “We remain positive on Eicher’s business prospects on the back of healthy growth and model launch. We expect Revenue/EBITDA/Growth of 21%/30%/30% from FY22-25E.” EPS are building at CAGR and our FY24E Revenue / EBITDA / PAT estimate (0.8)% / 1.6% / 1.6%. However, in the past one month, the stock has gained ~ 22%. We believe that The current valuation has impacted the company’s positive business prospects and thus we keep a cautious outlook on the stock. We downgrade Eicher to ACCUMULATE (Buy First). We are expected to arrive at Target Price (TP) by 25x Sept. ’24E EPS and VECV at 12x EV/EBITDA at 12x EV/EBITDA.) Rs 3,446.”

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