- 11 May 2023
- ICICI Securities
Eicher Motors Q4 Results 2023: Healthy performance
Eicher Motors Ltd | CMP: 4626 | Market Cap: 126,655.81
Eicher Motors' (EML) reported healthy performance in Q4FY23 with ASPs at Royal Enfield (RE) as well as profitability at VECV arm surprising positively.
Q4FY23 Earnings Summary
View: Eicher Motors (EML) is the market leader in the >250 cc premium motorcycle segment (market share ~85%+) through its aspirational models under the Royal Enfield (RE) brand, such as Classic, Bullet, Hunter, etc. It also has presence in the 650cc segment through 650 cc twins wherein its market share in international markets is pegged at ~8-10% in mid-weight segment & has recently launched Super Meteor 650cc to strengthen the same. Further with the launch of Hunter 350 at attractive price point, company is aiming to encash upon the premiumization trend domestically. Further on the EV front it has started tangible work on 2 EV platform i.e., one in house and one EV platform of stark mobility (i.e., its recent strategic investment in EV domain for development of premium EV motorcycles). Further on commercial vehicle front the company is well equipped with alternate fuel technologies like BEV, CNG, Fuel Cells, Hybrid, etc. Key monitorable going forward would be ramp up in wholesale volumes both at the RE as well as CV segment in FY24E & further improvement in operating margins amidst stable raw material prices.
Impact: Positive