Following the in-line March quarterly results for the 2021-22 (Q4FY22) fiscal year, auto major Eicher Motors shares hit a one-day high of Rs 2,587 per share on the BSE intraday on Monday, up more than 6 percent. Brokerages see potential growth of up to 22 percent in the stock
Eicher Motors reported an overall in-line result on Q4FY22, Yes Securities said, maintaining a buy rating with a target price of Rs 2,972 per share, which translates into a 22 percent upside.
After witnessing serious headwinds over the past 24 months, Yes Securities expects volume to increase later, in addition, recent launches could be an inflection point for RE (Royal Enfield) as a completely new and improved platform could drive a revival.
VECV (VE Commercial Vehicle) will see a cyclical recovery in volume and profit, resulting in a consolidated PAT CAGR between FY22-24E to 46 percent, YES Securities said, with the stock trading 24.1x / 18.7x FY23E / FY24E consolidated.
Similarly, Nirmal Bang, another brokerage, expects to see a healthy CAGR of 21% on domestic volume FY22-24E, leading to new model launches and a healthier model pipeline, along with ramping up alternative chip sources to reduce supply chain concerns. Given.
The company saw a 35% decline in internal volume from the highest level of FY19. However, we do not predict the FY24 FY19 level to be exceeded.
“The company further indicates that demand is strong in both domestic and export markets, including a strong order book. The search volume is strong and new launches have been well received in the market with a waiting period of about 2-3 months, ”said Nirmal Bang.
Nirmal Bang is positive on Iicher due to healthy growth prospects and 25% / 33% / 42% model revenue / EBITDA / EPS CAGR on FY22-24E, and believes that in the last 3 months after 14% correction in stock price, it Now there is an attractive price and a favorable risk-reward
Maintaining a BUY rating, Nirmal Bang Standard RE standalone at 24x FY24E EPS on FY24E and VECV 12x EV / EBITDA on FY24E will reach a target price of Rs 2,939 per share, up more than 20 per cent from Friday’s closing price per share. .
ICICI Direct Research says Eicher Motors posted a healthy operational performance on 4FY22. “The stock price of Eicher rose to a CAGR of about 4.3% from Rs 2,910 per share in May 2017, with the broader Nifty performing lower than the auto index,” it said.
ICICI Direct Research holds Eicher and is waiting for a better monthly volume print of the RE target, setting the stock price at Rs 2,480 per share; Allocating 23x PE in RE business and 20x PE in VECV business on FY24E number.