New products helping Eicher Motors ride fast

Supply-chain constraints are easing and demand momentum remains strong

Nitin Agrawal
November 11, 2022 / 09:42 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook

Highlights: A strong set of numbers in Q2 FY23, driven by new products, price hikes, and focus on yield improvement Demand outlook positive for medium to long term Commodity-linked cost pressure and shortage of semiconductor chips have started easing Stock trades at a discount to fair value, accumulate Eicher Motors (EML; CMP: Rs 3700; M Cap: Rs 1,01,310 crore) maintained the strong momentum in Q2 FY23, with the highest-ever revenue and operating profit for Royal Enfield (RE), driven by strong demand and new products. The...