Eicher Motors Limited

Consumer Cyclical — Auto Manufacturers · NSE

₹7,284.50+₹59.50 (+0.82%)

DalalBaazaar Score

75 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by high debt relative to equity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Eicher Motors Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Eicher Motors Limited, an automobile company, engages in the manufacture and sale of motorcycles and commercial vehicles in India and internationally.

IndustryAuto Manufacturers

SectorConsumer Cyclical

Employees5,302

Annual revenue₹22,978 Cr

How does it make money?

Turns over ₹22,978 Cr a year. Of every ₹100 of sales, about ₹24 reaches shareholders as profit, with ₹32 left at the operating level before interest, tax and depreciation. Each of its 5,302 employees supports ₹4.33 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.33 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TATA MOTORS LIMITED, TATA MOTORS PASS VEH LTD, MAHINDRA & MAHINDRA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 26.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 22.0% against a peer median of 19.7% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE19.7%

What is the outlook?

30 analysts covering the stock expect revenue to grow about 21.3% and earnings to grow about 17.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+21.3%

Est. earnings growth+17.6%

Analysts30

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +62% while net margin moved +17% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+62%

Margin effect+17%

DalalBaazaar Score

75/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 34.7x already prices in growth
• P/E is close to its own historical median of 37.8x
✗ P/B of 7.96x is a steep premium to book

Quality vs. Valuation

Company Quality

83/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

44/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

34.7x

3Y Median

37.8x

40 monthly readings · mean 38.1x · range 31.0x–46.7x

Sector Median

25.2x

median of 3 sector peers

🟡Currently trading close to its 3y median of 37.8x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 38% above the peer median of 25.2x.

vs. its own history

Fair

37.8x median over 40 months · -8%

vs. sector peers

Expensive

25.2x median of 3 peers · +38%

vs. generic bands

Fair

15x–35x

EV/EBITDA

27.3x

PEG

1.46

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 28.6% to 31.9% over 3 years.
Cash generation is improving
Free cash flow is up 65% over 3 years.
Return on capital is rising
ROCE has improved from 24.0% to 26.4%.
High return on capital employed
ROCE of 26.4% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 78% over 3 years, from ₹288 Cr to ₹514 Cr.
🔴High leverageFinancial
Debt/Equity of 2.05x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 28.6% to 31.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 2.05x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 38% above the peer median. That premium needs a reason that persists, or it closes.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 13% a year✓ 17.5% CAGR
Latest reported year was 31.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 30%✓ 31.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹3,530 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 23%✓ 26.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 2 neutral · 2 weak

Market Cap

₹2.00 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

34.7x

Fair

Fairly valued against the generic band

P/B Ratio

7.96x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹210.15

Profitable

Profitable on a per-share basis

ROE

22.0%

Strong

Strong capital efficiency

ROCE

26.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.05x

High

High leverage

Revenue Growth (YoY)

31.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

21.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.13%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹3,530 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

26.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

19.8%

Good

Healthy core-business profitability

Net Margin

23.2%

Good

Strong bottom-line conversion

Current Ratio

1.90

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.24

Defensive

Steadier than the market

52W Range Position

47%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

7190.5 / 7603.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹14,176 Cr	₹16,234 Cr	₹18,538 Cr	₹22,978 Cr	+17.5%
EBITDA	₹4,053 Cr	₹5,131 Cr	₹5,861 Cr	₹7,323 Cr	+21.8%
EBITDA Margin	28.6%	31.6%	31.6%	31.9%	—
PAT (Net Profit)	₹2,914 Cr	₹4,001 Cr	₹4,734 Cr	₹5,515 Cr	+23.7%
EPS	₹106.38	₹145.92	₹172.37	₹200.73	+23.6%
ROE	19.4%	22.2%	22.2%	22.0%	—
ROCE	24.0%	26.9%	26.1%	26.4%	—
Total Debt	₹288 Cr	₹419 Cr	₹458 Cr	₹514 Cr	+21.2%
Free Cash Flow	₹2,140 Cr	₹2,905 Cr	₹2,941 Cr	₹3,530 Cr	+18.1%

🟢 Revenue has grown at 17.5% a year over 3 years.

🟢 EBITDA has grown at 21.8% a year over 3 years.

🟢 EBITDA Margin has risen from 28.6% to 31.9% over 3 years (+3.3 pts).

🟢 PAT (Net Profit) has grown at 23.7% a year over 3 years.

🟢 EPS has grown at 23.6% a year over 3 years.

🟢 ROE has risen from 19.4% to 22.0% over 3 years (+2.5 pts).

🟢 ROCE has risen from 24.0% to 26.4% over 3 years (+2.5 pts).

🔴 Total Debt has grown at 21.2% a year over 3 years.

🟢 Free Cash Flow has grown at 18.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹32,164 Cr

Total Liabilities

₹7,063 Cr

Cash & Equivalents

₹234 Cr

Operating Cash Flow

₹4,805 Cr

Capex

-₹1,275 Cr

Shareholding (proxy)

Institutional Holding

26.0%

Insider Holding

51.3%

Corporate Actions

Next Earnings

12 Nov 2026

Dividend Rate

₹82

Ex-Dividend Date

31 Jul 2026

Analyst Consensus

Recommendations

24 Buy · 10 Hold · 3 Sell

Target Price (Mean)

₹8,306.56

+14.0% vs CMP

Target Range

₹6,900 – ₹9,665

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TATA MOTORS LIMITED	37.1x	32.8%
TATA MOTORS PASS VEH LTD	—	-3.0%
MAHINDRA & MAHINDRA LTD	17.8x	19.7%

Recent News

1 positive3 mixed2 general

Should You Buy Eicher Motors Limited (NSE:EICHERMOT) For Its Upcoming Dividend?

Simply Wall Street, 27 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Eicher Motors stock: At INR 7,284.50, Eicher Motors stock sits 11.5 percent below its 52-week high

ad-hoc-news.de, 16 Oct

Eicher Motors, Hero Motocorp shares fall up to 5% after August Sales data; should you buy, sell or hold?

Moneycontrol.com, 02 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Eicher Motors Limited Actuals & Estimates (NSE:EICHERMOT)

TradingView, 25 Jun

Eicher Motors Limited (NSE:EICHERMOT) Just Released Its First-Quarter Earnings: Here's What Analysts Think

Simply Wall Street, 01 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Eicher Motors stock trades at INR 7,095.50, 33.86 times earnings

ad-hoc-news.de, 13 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability · Risk

MiddlingFinancial Health

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑