Goldman Sachs maintains buy on Eicher Motors, target price Rs 25,334

Goldman Sachs maintained its buy rating on Eicher Motors in the long term with a target price of Rs 25,334. Shares of Eicher Motors declined 4% to Rs 19,893 on Wednesday while the BSE Sensex closed 51.73 points (0.13%) down at 40,817.74.


Company Financials


For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 2171.54 crore, down -8.03% from last quarter sales of Rs 2361.24 crore and down -9.34 % from last year same quarter sales of Rs 2395.22 crore. The company has reported net profit after tax of Rs 564.39 crore in the latest quarter.

The company’s top management includes Mr.Inder Mohan Singh, Mr.S Sandilya, Mr.Siddhartha Lal, Mr.Vinod Aggarwal, Mr.Vinod K Dasari, Ms.Manvi Sinha. The company has S R Batliboi & Co. LLP as its auditors. As on 30-09-2019, the company has a total of 27,289,722 shares outstanding.

Investment Rationale

The recent correction in the stock is a good opportunity to add to positions, said the brokerage. Goldman Sachs values Eicher’s main Royal Enfield business using a P/E of 22.0X on FY 21 estimated EPS. Royal Enfield is better positioned to navigate the BS-VI transition owing to relatively lower price increases, among other factors.