Eicher Motors Limited
Eicher Motors Limited Fundamental Analysis
Eicher Motors Limited (EICHERMOT.BO) shows strong financial fundamentals with a PE ratio of 41.93, profit margin of 24.11%, and ROE of 25.62%. The company generates $222.2B in annual revenue with strong year-over-year growth of 14.01%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze EICHERMOT.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentEICHERMOT.BO demonstrates superior asset utilization.
Valuation Score
WeakEICHERMOT.BO trades at a premium to fair value.
Growth Score
ExcellentEICHERMOT.BO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentEICHERMOT.BO maintains a strong and stable balance sheet.
Profitability Score
ModerateEICHERMOT.BO maintains healthy but balanced margins.
Key Financial Metrics
Is EICHERMOT.BO Expensive or Cheap?
P/E Ratio
EICHERMOT.BO trades at 41.93 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, EICHERMOT.BO's PEG of 8.59 indicates potential overvaluation.
Price to Book
The market values Eicher Motors Limited at 10.17 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 35.89 times EBITDA. This signals the market has high growth expectations.
How Well Does EICHERMOT.BO Make Money?
Net Profit Margin
For every $100 in sales, Eicher Motors Limited keeps $24.11 as profit after all expenses.
Operating Margin
Core operations generate 26.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.62 in profit for every $100 of shareholder equity.
ROA
Eicher Motors Limited generates $18.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Eicher Motors Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Eicher Motors Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
EICHERMOT.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
41.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
8.59
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.59
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How EICHERMOT.BO Stacks Against Its Sector Peers
| Metric | EICHERMOT.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 41.93 | 25.08 | Worse (Expensive) |
| ROE | 25.62% | 1151.00% | Weak |
| Net Margin | 24.11% | 676.00% | Weak |
| Debt/Equity | 0.02 | 0.70 | Strong (Low Leverage) |
| Current Ratio | 1.59 | 3.94 | Neutral |
| ROA | 18.51% | -8246.00% (disorted) | Strong |
EICHERMOT.BO outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Eicher Motors Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
104.69%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
157.58%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
133.57%
Industry Style: Cyclical, Growth, Discretionary
High Growth