May 22, 2018 05:23 PM IST | Source: Moneycontrol.com

Accumulate Eicher Motors; target of Rs 33308: Dolat Capital

Dolat Capital recommended accumulate rating on Eicher Motors with a target price of Rs 33308 in its research report dated May 16, 2018.

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Dolat Capital's research report on Eicher Motors


Eicher Motors (EML) numbers were in line with expectations at revenue and operating level. Numbers at net level were low due to a one time write off `1.9bn (due to closure of Eicher Polaris business). With RE segment focusing on capacity augmentation as well as new product launches, growth trajectory should remain strong. Realizations improvement shows the pricing power with expansion of gross margins on per unit basis. With strong CV volume cycle, we expect VECV to gain traction. Export market potential is the focus area and should playout in next few years.

Outlook
We rollover valuation to FY20E and reiterate Accumulate with a target price of ` 33,308 based on 25x FY20E EPS on consolidated basis.

For all recommendations report, click here


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