Eicher Motors Limited

EICHERMOT.BO•auto-manufacturers

Current Price

6,873.55INR

per share

Fair Value

3,029.35INR

Overvalued

126.9%

Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 11.49%, lower than industry average of 12.70%.

Growth Trajectory

Profitability

In the growth phase company makes 27.78% profit on every dollar of sales, higher than industry average of 6.71%.

Profitability Trajectory

Risk Profile

Investors expect at least 7.86% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)

Return on Invested Capital (%)

Financial Health Overview

Enterprise Value

797.58B INR

Equity Value

830.53B INR

FCF Yield

30.63%

Average ROIC

26.99%

Cost of Capital

8.23%

P/E Ratio

39.84x

Financial Metric	Most Recent 12 months (INR)	Previous Year (INR)
Revenues	191.70B INR	162.34B INR
Operating Income or EBIT	61.42B INR	52.77B INR
Interest Expense	569.70M INR	508.80M INR
Book Value Of Equity	212.96B INR	180.46B INR
Book Value Of Debt	4.58B INR	4.19B INR
Cash and Marketable Securities	37.54B INR	14.58B INR
Number of Shares Outstanding	274.16M	--
Minority interests	0 INR	0 INR
Current Stock Price	6873.55 INR	--
Effective Tax Rate	23.00%	--
Marginal Tax Rate	30.00%	--

Performance vs Industry

Revenue Growth

+5.39%

18.08%Company

12.69%Industry

Above Industry

Operating Margin

+25.33%

32.03%Company

6.70%Industry

Above Industry

Eicher Motors Limited demonstrates superior performance in both growth and profitability compared to industry peers, indicating strong competitive advantages and operational excellence.

Terminal Value Analysis

Growth Rate

4.65%

Cost of Capital

8.88%

Return on Capital

8.87%

Reinvestment Rate

52.36%

Terminal value represents 56% of total enterprise value, based on 4.65% perpetual growth and 8.88% discount rate.

Equity Value Breakdown

Component	Value	Type
Present Value (Terminal Value)	448.83B INR	Add
Present Value (Cash Flow Over Next 10 Years)	348.74B INR	Add
Value of Operating Assets	797.58B INR	Sub-total
Debt	4.58B INR	Subtract
Minority Interests	—	Subtract
Cash	37.53B INR	Add
Value of Equity	830.53B INR	Sub-total
Number of Shares	274.16M shares	Divisor
Estimated Value per Share (Fair Value)	3.02K INR	Total
Current Market Price	6.87K INR	Reference

Financial Projections

Total FCF Present Value

348.74B INR

Avg Revenue Growth

8.38%

Avg Operating Margin

26.83%

Avg ROIC

26.99%

Year	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal Year
REVENUE
Revenue	216.85B INR	241.77B INR	269.55B INR	300.53B INR	335.06B INR	368.98B INR	401.28B INR	430.92B INR	456.85B INR	478.10B INR	500.33B INR
Growth Rate	13.12%	11.49%	11.49%	11.49%	11.49%	10.12%	8.75%	7.38%	6.01%	4.65%	4.65%
PROFITABILITY
Operating Income	69.47B INR	70.60B INR	74.89B INR	79.24B INR	83.59B INR	92.05B INR	100.11B INR	107.50B INR	113.98B INR	119.28B INR	124.82B INR
Operating Margin	32.03%	29.20%	27.78%	26.36%	24.94%	24.94%	24.94%	24.94%	24.94%	24.94%	24.94%
EBIT (1-tax)	53.49B INR	54.36B INR	57.66B INR	61.01B INR	64.36B INR	69.59B INR	74.28B INR	78.26B INR	81.38B INR	83.49B INR	87.37B INR
CASH FLOW
Reinvestment	8.54B INR	9.53B INR	10.62B INR	11.84B INR	11.63B INR	22.16B INR	20.33B INR	17.79B INR	14.57B INR	15.25B INR	45.75B INR
Free Cash Flow	44.95B INR	44.83B INR	47.04B INR	49.16B INR	52.73B INR	47.43B INR	53.95B INR	60.47B INR	66.80B INR	68.24B INR	41.62B INR
Terminal Value	--	--	--	--	--	--	--	--	--	--	983.99B INR
Present Value	41.67B INR	38.53B INR	37.49B INR	36.32B INR	36.12B INR	30.06B INR	31.58B INR	32.64B INR	33.17B INR	31.12B INR	—
EFFICIENCY
ROIC	29.71%	28.83%	29.11%	29.23%	29.18%	29.97%	29.20%	28.49%	27.82%	27.19%	8.87%
Cost of Capital	7.86%	7.86%	7.86%	7.86%	7.86%	8.06%	8.26%	8.47%	8.67%	8.87%	8.88%
Sales/Capital	2.91x	2.91x	2.91x	2.91x	2.91x	1.45x	1.45x	1.45x	1.45x	1.45x	—

Profitability & Efficiency

Operating Margin (%)

ROIC (%)

Value Creation Analysis

ROIC (%)

Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (₹B)

Reinvestment (₹B)