13 June 2020 Results Review 4QFY20 Eicher Motors Motors... · Eicher Motors HSIE Research is also available on Bloomberg ERH HDF & Thomson Reuters Mixed bag Eicher’s

13 June 2020 Results Review 4QFY20

Eicher Motors

HSIE Research is also available on Bloomberg ERH HDF <GO> & Thomson Reuters

Mixed bag

Eicher’s 4QFY20 results were a mixed bag – while RE’s adj. EBITDA margins

came in at 23.1% (-210bps QoQ), which was above estimates, VECV reported a

loss of Rs 260mn due to the challenging demand environment. We will

monitor the margin trajectory at RE, particularly at a time when the demand

environment remains uncertain. We re-iterate our REDUCE rating on the

stock.

4QFY20 Financials: Volumes for RE at ~163k units were down 17/11%

YoY/QoQ. Realization grew 5% YoY to Rs 133k owing to BSVI transition

(over 60% of sales were of BSVI variants in 4Q). Standalone revenue fell

13/8%. YoY/QoQ. While reported EBITDA margins came in at 20.8% (-700/-

440bps YoY/QoQ), it included Rs 500mn of one-offs (recall of faulty brake

callipers from Europe and US; provisions for forex). Standalone PAT

declined 30% YoY to Rs 3.46bn, while consolidated profit declined 44% YoY

to ~Rs 3bn due to the weak performance at VECV (loss of Rs 260mn).

Call & other takeaways: (1) Small format stores: In 4QFY20, the co has

added 100 small format stores; 600+ stores were opened till Mar-20. (2) BSVI

transition: The co successfully made the BSVI transition and share of BSVI

vehicles was 60% in 4QFY20. The OEM has taken a price increase of Rs 3,000

on its products in April. (3) Situation post lockdown being lifted: 85-90% of

dealerships are now open and the co is witnessing encouraging booking

trends. North and South have seen positive traction; however, West is

lagging due to COVID affected states like Maharashtra and Gujarat. (4) New

launches and expansion: While Eicher is launching products for the export

markets, the models will have to be relevant for India as well. This will drive

scale and enable competitive pricing. In overseas markets, exclusive stores

have now almost doubled from 42 stores in 18 countries to 77 stores in 21

countries; 10 stores were added during this quarter. (5) Other highlights: A

significant component of RE’s demand comes from consumers replacing

their older bikes with the higher powered 350cc products. (6) All the major

capex programs such as the Vallum plant have now been commissioned.

Maintain REDUCE. We increase our FY21/22E EPS by 3/4%. We continue to

value the RE business at 20x PE and set a revised Mar-22 SOTP based TP of

Rs 15,020. Key risks: Faster than expected economic recovery, encouraging

response to new product launches.

Financial Summary (Consolidated) YE Mar (Rs

mn)

4Q

FY20

4Q

FY19

YoY

(%)

3Q

FY20

QoQ

(%) FY18 FY19 FY20P FY21E FY22E

Net Sales 22,082 25,001 (11.7) 23,710 (6.9) 89,650 97,971 91,536 83,843 95,151

EBITDA 4,322 6,847 (36.9) 5,923 (27.0) 28,076 29,031 21,804 18,708 22,500

APAT 3,043 5,448 (44.2) 4,987 (39.0) 21,797 22,203 18,275 15,282 19,221

Adj. EPS (Rs) 111.6 199.9 (44.2) 182.9 (39.0) 799.6 814.5 670.4 560.6 705.1

APAT

Growth (%) 27.2 1.9 (17.7) (16.4) 25.8

P/E (x)

21.1 20.7 25.2 30.1 23.9

RoE (%)

35.2 27.8 19.0 14.0 15.6

Source: Company, HSIE Research

REDUCE

CMP (as on 12 Jun 2020) Rs 16,857

Target Price Rs 15,020

NIFTY 9,973

KEY

CHANGES OLD NEW

Rating REDUCE REDUCE

Price Target Rs 13,800 Rs 15,020

EPS % FY21E FY22E

3% 4%

KEY STOCK DATA

Bloomberg code EIM IN

No. of Shares (mn) 27

MCap (Rs bn) / ($ mn) 460/6,069

6m avg traded value (Rs mn) 3,630

52 Week high / low Rs 23,450/12,450

STOCK PERFORMANCE (%)

3M 6M 12M

Absolute (%) (0.1) (23.2) (16.2)

Relative (%) (3.2) (6.5) (1.1)

SHAREHOLDING PATTERN (%)

Dec-19 Mar-20

Promoters 49.3 49.3

FIs & Local MFs 8.3 11.3

FPIs 31.2 27.7

Public & Others 11.2 11.8

Pledged Shares 0.0 0.0

Source : BSE

Aditya Makharia

[email protected]

+91-22-6171-7316

Mansi Lall

[email protected]

+91-22-6171-7357

Page | 2

Eicher Motors: Results Review 4QFY20

Quarterly Financial Snapshot: Standalone

Particulars (Rs mn) 4Q

FY20

4Q

FY19

YoY

(%)

3Q

FY20

QoQ

(%) FY20 FY19 YoY (%)

Volumes (in units) 162,870 196,162 (17.0) 182,791 (10.9) 695,839 826,098 (15.8)

Net ASP (Rs/veh) 133,818 127,425 5.0 129,302 3.5 130,454 118,563 10.0

Net sales (incl OOI) 21,795 24,996 (12.8) 23,635 (7.8) 90,775 97,945 (7.3)

Material Expenses 12,310 13,382 (8.0) 12,926 (4.8) 49,858 50,628 (1.5)

Employee Expenses 2,051 1,645 24.7 1,776 15.5 7,651 6,795 12.6

Other Operating Expenses 2,902 3,027 (4.1) 2,981 (2.7) 11,228 11,253 (0.2)

Total Expenditure 17,263 18,054 (4.4) 17,683 (2.4) 68,737 68,676 0.1

EBITDA 4,533 6,942 (34.7) 5,952 (23.9) 22,038 29,269 (24.7)

Depreciation 1,079 808 33.6 942 14.5 3,779 2,989 26.4

EBIT 3,454 6,134 (43.7) 5,010 (31.1) 18,259 26,279 (30.5)

Other Income 1,462 1,422 2.8 1,358 7.6 6,153 4,905 25.4

Interest Cost 25 8 208.8 27 (9.2) 109 30 263.2

PBT 4,891 7,549 (35.2) 6,341 (22.9) 24,303 31,155 (22.0)

Tax 1,429 2,744 (47.9) 1,452 (1.6) 5,265 10,785 (51.2)

RPAT 3,462 4,804 (27.9) 4,889 (29.2) 19,038 20,369 (6.5)

EO Items (Adj For Tax) - - - - - - (175) -

APAT 3,462 4,804 (27.9) 4,889 (29.2) 19,038 20,544 (7.3)

Adj EPS 127.0 176.2 (27.9) 179.4 (29.2) 698.4 753.6 (7.3)


Quarterly Performance Analysis

As % of sales 4Q

FY20

4Q

FY19

YoY

(bps)

3Q

FY20

QoQ

(bps) FY20 FY19

YoY

(bps)

Material Expenses 56.5 53.5 294 54.7 179 54.9 51.7 323

Employee Expenses 9.4 6.6 283 7.5 190 8.4 6.9 149

Other Operating Expenses 13.3 12.1 120 12.6 70 12.4 11.5 88

Total Expenditure 79.2 72.2 698 74.8 439 75.7 70.1 561

EBITDA 20.8 27.8 (698) 25.2 (439) 24.3 29.9 (561)

RPAT 15.9 19.2 (334) 20.7 (480) 21.0 20.8 18

APAT 15.9 19.2 (334) 20.7 (480) 21.0 21.0 (0)

Tax as % of PBT 29.2 36.4 (714) 22.9 633 21.7 34.6 (1,295)


Volumes declined 18/11%

YoY/QoQ owing to weak

macroeconomic

environment

Average realisations grew

on the back of price hike

taken on BSVI products;

which contributed 60% to

4QFY20 volumes

Depreciation charges were

higher as the Vallam plant

capacity is commissioned

EBITDA Margin included

one offs of Rs 500mn

(relating to fx provision

and brake calliper recall).

Adj. For the same, the

margin was 23.1%

Page | 3


Quarterly Financials Snapshot: VECV

4Q

FY20

4Q

FY19

YoY

(%)

3Q

FY20

QoQ

(%) FY20 FY19

YoY

(%)

Volumes (in units) 11,629 21,010 (44.7) 12,391 (6.1) 48,721 72,969 (33.2)

Net Sales 21,010 32,090 (34.5) 21,640 (2.9) 85,240 116,000 (26.5)

EBITDA 380 2,740 (86.1) 1,330 (71.4) 4,010 9,720 (58.7)

EBITDA margin (%) 1.8 8.5 -673 bps 6.1 -434 bps 4.7 8.4 -367 bps

PAT (260) 1,390 (118.7) 300 (186.7) 570 4,750 (88.0)

Quarterly Financials Snapshot: Consolidated

4Q

FY20

4Q

FY19

YoY

(%)

3Q

FY20

QoQ

(%) FY20 FY19

YoY

(%)

Net sales (incl OOI) 22,082 25,001 (11.7) 23,710 (6.9) 91,536 97,971 (6.6)

EBITDA 4,322 6,847 (36.9) 5,923 (27.0) 21,803 29,031 (24.9)

EBITDA margin (%) 19.6 27.4 -781 bps 25.0 -541 bps 23.8 29.6 -581 bps

Depreciation 1,089 811 34.3 952 14.4 3,815 3,003 27.1

EBIT 3,233 6,036 (46.4) 4,971 (35.0) 17,988 26,028 (30.9)

Other Income 1,431 1,427 0.3 1,347 6.3 5,433 4,434 22.5

Interest Cost 55 21 158.4 43 29.8 189 73 157.6

PBT 4,609 7,441 (38.1) 6,275 (26.6) 23,232 30,389 (23.6)

Tax 1,426 2,748 (48.1) 1,454 (1.9) 5,275 10,770 (51.0)

Share of JV profit (140) 755 (118.6) 166 (184.6) 317 2,584 (87.7)

RPAT 3,043 5,448 (44.2) 4,987 (39.0) 18,274 22,028 (17.0)

EO Items (Adj For Tax) - - - - - - (175) -

APAT 3,043 5,448 (44.2) 4,987 (39.0) 18,274 22,203 (17.7)

Adj EPS 111.6 199.9 (44.2) 182.9 (39.0) 670.4 814.5 (17.7)

VECV margins at 1.8%

contracted 680/440bps

YoY/QoQ. The CV trends

remain weak

Page | 4


RE volumes affected due to weak macros RE realizations grew owing to BSVI price hikes



RE’s EBITDA margin were impacted by one-offs VECV volumes remained weak

Source: Company, HSIE Research Source: Company, HSIE Research

VECV margins are impacted due to operating

deleverage

Rolling forward P/E band (x)

Source: Company, HSIE Research Source: Bloomberg, Company, HSIE Research

27

.4%

22

.5%

3.6

%

-5.9

%

-13

.6%

-18

.5% -2

0.7

% -6.0

%

-17

.0%

-25%

-15%

-5%

5%

15%

25%

35%

140

160

180

200

220

240

4Q

FY1

8

1Q

FY1

9

2Q

FY1

9

3Q

FY1

9

4Q

FY1

9

1Q

FY2

0

2Q

FY2

0

3Q

FY2

0

4Q

FY2

0

RE Volumes (in units '000) % YoY - RHS

5.4

%

3.9

%

7.3

%

10

.1% 1

4.4

%

13

.5% 14

.5%

7.2

%

5.0

%

0%

3%

6%

9%

12%

15%

100

105

110

115

120

125

130

135

4Q

FY1

8

1Q

FY1

9

2Q

FY1

9

3Q

FY1

9

4Q

FY1

9

1Q

FY2

0

2Q

FY2

0

3Q

FY2

0

4Q

FY2

0

Realisation (in Rs '000) % YoY - RHS3

2.3

%

32

.3%

29

.9%

29

.5%

27

.8%

25

.9%

25

.0%

25

.2%

20

.8%

20%

25%

30%

35%

4Q

FY1

8

1Q

FY1

9

2Q

FY1

9

3Q

FY1

9

4Q

FY1

9

1Q

FY2

0

2Q

FY2

0

3Q

FY2

0

4Q

FY2

0

EBITDA margin (%)

33

.2

41

.0

24

.5

4.3

(9.1

)

(18

.3)

(39

.2) (2

6.8

)

(44

.7)

-45

-30

-15

0

15

30

45

10

15

20

25

4Q

FY1

8

1Q

FY1

9

2Q

FY1

9

3Q

FY1

9

4Q

FY1

9

1Q

FY2

0

2Q

FY2

0

3Q

FY2

0

4Q

FY2

0

VECV Vols (in units '000) % YoY - RHS

9.5

%

9.2

%

9.0

%

6.8

%

8.5

%

5.5

%

5.2

% 6.1

%

1.8

%

0%

2%

4%

6%

8%

10%

4Q

FY1

8

1Q

FY1

9

2Q

FY1

9

3Q

FY1

9

4Q

FY1

9

1Q

FY2

0

2Q

FY2

0

3Q

FY2

0

4Q

FY2

0

VECV EBITDA margin (%)

24

26

28

30

32

34

36

38

40

Jun

-15

Dec

-15

Jun

-16

Dec

-16

Jun

-17

Dec

-17

Jun

-18

Dec

-18

Jun

-19

Dec

-19

Jun

-20

P/E

Page | 5


Harley Davidson is expanding beyond cruiser bikes as the segment is shrinking. See link

to our report- Two-wheelers: A changed landscape

Global sales of Harley Davidson were down 5% YoY in

2019 (in units)

USA 601cc+ Premium Motorcycle sales



Harley – PAN AMERICA 1250 ADV Harley Davidson Bronx – ‘Streetfighter’

Source: Company, HSIE Research Source: Company, HSIE Research

Volume assumptions

in units FY17 FY18 FY19 FY20 FY21E FY22E

RE 666,490 820,493 823,828 696,052 602,132 662,345

% YoY 10.9 23.1 0.4 (15.5) (13.5) 10.0

VECV 58,538 65,932 72,969 48,721 41,626 48,753

% YoY (7.2) 12.6 10.7 (33.2) (14.6) 17.1

Total volumes 725,028 886,425 896,797 744,773 643,758 711,098

% YoY 9.2 22.3 1.2 (17.0) (13.6) 10.5

RE average ASP (Rs) 104,687 108,098 118,890 130,414 139,201 143,619

% YoY 2.6 3.3 10.0 9.7 6.7 3.2


190,000

210,000

230,000

250,000

270,000

2014 2015 2016 2017 2018 2019

-40%

-30%

-20%

-10%

0%

10%

200

250

300

350

400

450

500

550

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

US 601+ cc sales ('000 units) % YoY - RHS

https://www.hdfcsec.com/hsl.docs/Autos%20-Two%20wheeler%20-%20Changed%20landscape%20-%20HSIE-202005112159302848616.pdf

Page | 6


Valuation Summary

We have a REDUCE rating on Eicher with a revised TP of Rs 15,020

We continue to value the core RE business at 20x, which is at a 20% premium to mass market OEMs.

SOTP Valuation Stake held (%) Valuation methodology Multiple (x) Value/sh (Rs)

Royal Enfield 100 P/E on Mar-22E core EPS 20 14,685

VECV 54.4 P/E on Mar-22E 12 335

Target Price (Rs)

15,020

Change in Estimates

Rs mn New Old Change (%)

FY21E FY22E FY21E FY22E FY21E FY22E

Net Sales 83,843 95,151 82,026 92,399 2 3

EBITDA 18,708 22,500 17,886 21,492 5 5

EBITDA margin (%) 22.3 23.6 21.8 23.3 51 bps 39 bps

Adj PAT 15,282 19,221 14,783 18,461 3 4

Adj EPS (in Rs) 560.6 705.1 542.3 677.2 3 4

Source: HSIE Research

Peer set comparison

Mcap

(Rs bn)

CMP

(Rs/sh) Reco TP

Adj EPS (Rs/sh) P/E (x) RoE (%)

FY20E FY21E FY22E FY20E FY21E FY22E FY20E FY21E FY22E

Ashok Leyland 154 52 REDUCE 46 1.2 1.0 3.5 43.3 52.4 14.9 4.2 3.4 11.4

Bajaj Auto 806 2,784 ADD 2,850 176.2 149.4 167.6 15.8 18.6 16.6 22.9 18.2 18.8

Eicher Motors 460 16,857 REDUCE 15,020 670.4 560.6 705.1 25.2 30.1 23.9 19.0 14.0 15.6

Escorts Ltd. 120 977 BUY 950 55.4 49.9 63.1 17.6 19.6 15.5 15.1 12.0 12.2

Hero Motocorp 480 2,401 BUY 2,650 155.0 128.7 155.5 15.5 18.7 15.4 22.9 17.3 19.2

Maruti Suzuki 1,678 5,555 BUY 5,810 187.1 146.0 252.4 29.7 38.0 22.0 11.7 8.5 13.6

Source: HSIE Research

Page | 7


Financials Consolidated Income Statement

(Rs mn) FY17 FY18 FY19 FY20P FY21E FY22E

Net Revenues 70,334 89,650 97,971 91,536 83,843 95,151

Growth (%) 13.9 27.5 9.3 (6.6) (8.4) 13.5

Material Expenses 37,045 46,435 50,574 49,959 46,686 52,319

Employee Expenses 4,263 5,737 7,024 7,958 7,460 8,276

Other Operating Expenses 7,287 9,402 11,341 11,815 10,989 12,056

Total Expenses 48,594 61,573 68,940 69,732 65,135 72,651

EBITDA 21,740 28,076 29,031 21,804 18,708 22,500

EBITDA Margin (%) 30.9 31.3 29.6 23.8 22.3 23.6

EBITDA Growth (%) 28.7 29 3 (25) (14) 20

Depreciation 1,538 2,233 3,003 3,815 3,817 4,084

EBIT 20,201 25,843 26,028 17,988 14,891 18,416

Other Income (Including EO Items) 1,813 601 4,259 5,433 5,298 6,015

Interest 36 53 73 188 192 201

PBT 21,979 26,390 30,214 23,233 19,997 24,230

Tax (Incl Deferred) 7,203 9,359 10,770 5,275 4,779 5,767

Share of profit from JV 1,895 2,566 2,584 317 64 758

RPAT 16,671 19,597 22,027 18,275 15,282 19,221

EO (Loss) / Profit (Net Of Tax) (460) (2,201) (175) - - -

APAT 17,131 21,797 22,203 18,275 15,282 19,221

APAT Growth (%) 28.0 27.2 1.9 (17.7) (16.4) 25.8

Adjusted EPS (Rs) 629.6 799.6 814.5 670.4 560.6 705.1


Consolidated Balance Sheet

(Rs mn) FY17 FY18 FY19 FY20P FY21E FY22E

SOURCES OF FUNDS

Share Capital - Equity 272 273 273 273 273 273

Reserves 53,179 70,028 88,914 103,217 115,053 130,051

Total Shareholders Funds 53,451 70,301 89,187 103,489 115,325 130,324

Short Term Debt 444 1,508 1,868 1,961 2,059 2,162

Total Debt 444 1,508 1,868 1,961 2,059 2,162

Net Deferred Taxes 778 1,421 2,739 2,191 2,213 2,235

TOTAL SOURCES OF FUNDS 54,673 73,230 93,794 107,641 119,597 134,721

APPLICATION OF FUNDS

Net Block 8,728 15,017 18,746 21,430 20,854 22,872

CWIP 3,738 3,332 4,497 4,797 5,097 5,397

Investments 17,458 17,643 19,439 18,984 19,023 19,525

Total Non-current Assets 29,924 35,992 42,682 45,212 44,975 47,795

Cash & Equivalents 32,664 50,286 59,439 70,133 82,442 95,567

Inventories 3,359 3,946 6,334 6,019 5,283 5,996

Debtors 500 680 903 1,254 1,149 1,303

Other Current Assets 3,460 4,319 4,510 4,848 5,239 5,666

Total Current Assets 39,983 59,231 71,186 82,253 94,113 108,532

Creditors 8,327 11,719 12,341 11,536 10,567 11,992

Other Current Liabilities & Provns 6,907 10,274 7,734 8,288 8,924 9,614

Total Current Liabilities 15,234 21,992 20,075 19,824 19,491 21,606

Net Current Assets 24,749 37,238 51,111 62,429 74,622 86,926

TOTAL APPLICATION OF FUNDS 54,673 73,230 93,794 107,641 119,597 134,721


Page | 8


Consolidated Cash Flow (Rs mn) FY17 FY18 FY19 FY20P FY21E FY22E

Reported PBT 23,874 28,956 32,798 23,550 20,061 24,987

Non-operating & EO Items (1,813) (601) (4,259) (5,433) (5,298) (6,015)

Interest Expenses 36 53 73 188 192 201

Depreciation 1,538 2,233 3,003 3,815 3,817 4,084

Working Capital Change 1,815 5,133 (4,720) (624) 116 821

Tax Paid (6,784) (8,716) (9,452) (5,823) (4,757) (5,745)

OPERATING CASH FLOW ( a ) 18,666 27,058 17,443 15,674 14,131 18,334

Capex (5,117) (8,117) (7,897) (6,800) (3,541) (6,402)

Free Cash Flow (FCF) 13,548 18,942 9,546 8,874 10,590 11,932

Investments - (185) (1,797) 455 (39) (502)

Non-operating Income 1,813 601 4,259 5,433 5,298 6,015

INVESTING CASH FLOW ( b ) (3,304) (7,701) (5,435) (912) 1,718 (889)

Debt Issuance/(Repaid) 218 1,064 359 93 98 103

Interest Expenses (36) (53) (73) (188) (192) (201)

FCFE 13,731 19,953 9,832 8,780 10,496 11,834

Share Capital Issuance 3,420 746 832 (0) 0 -

Dividend (3,171) (3,493) (3,973) (3,973) (3,446) (4,222)

FINANCING CASH FLOW ( c ) 432 (1,736) (2,855) (4,068) (3,540) (4,321)

NET CASH FLOW (a+b+c) 15,793 17,622 9,153 10,694 12,310 13,125

Closing Cash & Equivalents 32,664 50,286 59,439 70,133 82,442 95,567

Key Ratios

FY17 FY18 FY19 FY20P FY21E FY22E

PROFITABILITY (%)

GPM 47.3 48.2 48.4 45.4 44.3 45.0

EBITDA Margin 30.9 31.3 29.6 23.8 22.3 23.6

EBIT Margin 28.7 28.8 26.6 19.7 17.8 19.4

APAT Margin 24.4 24.3 22.7 20.0 18.2 20.2

RoE 38.1 35.2 27.8 19.0 14.0 15.6

RoIC (or Core RoCE) 64.3 74.2 58.5 38.7 30.4 36.8

RoCE 32.9 28.9 23.5 18.0 13.5 14.6

EFFICIENCY

Tax Rate (%) 32.8 35.5 35.6 22.7 23.9 23.8

Fixed Asset Turnover (x) 8.1 6.0 5.2 4.3 4.0 4.2

Inventory (days) 17.4 16.1 23.6 24.0 23.0 23.0

Debtors (days) 2.6 2.8 3.4 5.0 5.0 5.0

Other Current Assets (days) 18.0 17.6 16.8 19.3 22.8 21.7

Payables (days) 43.2 47.7 46.0 46.0 46.0 46.0

Other Current Liab & Provns (days) 35.8 41.8 28.8 33.0 38.9 36.9

Cash Conversion Cycle (days) (41.1) (53.1) (31.0) (30.7) (34.0) (33.1)

Debt/EBITDA (x) (1.5) (1.7) (2.0) (3.1) (4.3) (4.2)

Net D/E (x) (0.6) (0.7) (0.6) (0.7) (0.7) (0.7)

Interest Coverage (x) 567.5 484.0 355.1 95.6 77.6 91.4

PER SHARE DATA (Rs)

EPS 629.6 799.6 814.5 670.4 560.6 705.1

CEPS 669.2 800.8 918.2 810.4 700.6 854.9

Dividend 100.0 110.0 125.1 125.1 108.5 132.9

Book Value 1,964 2,579 3,272 3,796 4,231 4,781

VALUATION

P/E (x) 26.8 21.1 20.7 25.2 30.1 23.9

P/BV (x) 8.6 6.5 5.2 4.4 4.0 3.5

EV/EBITDA (x) 19.6 14.6 13.8 18.0 20.3 16.3

EV/Revenues (x) 6.1 4.6 4.1 4.3 4.5 3.8

OCF/EV (%) 4.4 6.6 4.3 4.0 3.7 5.0

FCF/EV (%) 3.2 4.6 2.4 2.3 2.8 3.3

FCFE/Mkt Cap (%) 3.0 4.3 2.1 1.9 2.3 2.6

Dividend Yield (%) 0.6 0.7 0.7 0.7 0.6 0.8


Page | 9


Rating Criteria

BUY: >+15% return potential

ADD: +5% to +15% return potential

REDUCE: -10% to +5% return potential

SELL: >10% Downside return potential

Date CMP Reco Target

10-Jul-19 19,039 SELL 17,150

1-Aug-19 16,348 SELL 14,760

22-Sep-19 17,860 NEU 16,280

11-Oct-19 18,201 NEU 16,280

9-Nov-19 21,701 NEU 19,650

9-Jan-20 19,892 NEU 19,650

6-Feb-20 20,391 NEU 19,650

2-Mar-20 16,602 ADD 20,340

20-Apr-20 14,766 REDUCE 13,800

11-May-20 14,304 REDUCE 13,800

13-Jun-20 16,857 REDUCE 15,020

From 2nd March 2020, we have moved to new rating system

RECOMMENDATION HISTORY

12,000

14,000

16,000

18,000

20,000

22,000

24,000

Jun

-19

Jul-

19

Au

g-1

9

Sep

-19

Oct

-19

No

v-1

9

Dec

-19

Jan

-20

Feb

-20

Ma

r-2

0

Ap

r-2

0

Ma

y-2

0

Jun

-20

Eicher TP

Page | 10


HDFC securities

Institutional Equities

Unit No. 1602, 16th Floor, Tower A, Peninsula Business Park,

Senapati Bapat Marg, Lower Parel, Mumbai - 400 013

Board: +91-22-6171-7330 www.hdfcsec.com

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the date of publication of the Research Report. Further Research Analyst or his relative or HDFC Securities Ltd. or its associate does not have any material

conflict of interest.

Any holding in stock –No

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