Buy Eicher Motors, target Rs 33592: Religare Securities

Religare Broking has a buy call on Eicher Motors Ltd. with a target price of Rs 33592. The current market price of Eicher Motors Ltd. is Rs 29517.2. Time period given by the brokerage is year when Eicher Motors Ltd. price can reach defined target. . Eicher Motors Ltd., incorporated in 1982, is a largecap company with a market cap of Rs 80421.31 crore).

Investment rationale by Religare Broking

Eicher Motors reported healthy set of numbers which were in line with our estimates. Its consolidated net revenue and net profit grew by 33.9% and 38.1% yoy respectively. The company sold 2,26,907 units of RE in Q4FY18 up by 27.2% yoy. Also of its JV with Volvo group (VE commercial vehicles) reported strong growth with total volumes up 33.2% yoy and improvement in profitability. We maintain our positive view on account of new product launches (RE), untapped export opportunity and CV cycle recovery. Maintain Buy with a revised target price of Rs. 33,592.