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Eicher Motors Ltd

NSE: EICHERMOT BSE: 505200

8010.50

(-2.19%)

Tue, 03 Mar 2026, 09:55 pm

Eicher Motors Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (5.4x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (5.3x coverage).
  • Dividends per share have been stable in the past 10 years.
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Cons

  • Eicher Motors's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Eicher Motors's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Eicher Motors's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Eicher Motors's earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • Performance (ROE) is expected to be above the current IN Auto industry average.
  • An improvement in Eicher Motors's performance (ROE) is expected over the next 3 years.
  • Eicher Motors's revenue growth is expected to exceed the India market average.
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Cons

  • Cash flow for Eicher Motors is expected to increase but not above the 50% threshold in 2 years time.
  • Eicher Motors's earnings are expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).
  • Eicher Motors's earnings growth is positive but not above the India market average.
  • Eicher Motors's earnings are expected to decrease over the next year.
  • Eicher Motors's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Eicher Motors is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Eicher Motors's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Eicher Motors's revenue is expected to grow by 9.1% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Eicher Motors is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Eicher Motors is profitable, therefore cash runway is not a concern.
  • Eicher Motors is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (1173%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 44.1x debt.
  • Eicher Motors's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (1.7% vs 1.4% today).
  • Interest payments on debt are well covered by earnings (EBIT is 95.3x coverage).
  • Eicher Motors's level of debt (1.4%) compared to net worth is satisfactory (less than 40%).
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Cons

  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Eicher Motors board of directors is about average.
  • The average tenure for the Eicher Motors management team is over 5 years, this suggests they are a seasoned and experienced team.
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Cons

  • Siddhartha's remuneration is higher than average for companies of similar size in India.
  • Siddhartha's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.

past

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Pros

  • Eicher Motors's year on year earnings growth rate has been positive over the past 5 years.
  • Eicher Motors used its assets more efficiently than the IN Auto industry average last year based on Return on Assets.
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Cons

  • Eicher Motors's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Eicher Motors's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
  • Eicher Motors has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Eicher Motors's 1-year earnings growth is negative, it can't be compared to the IN Auto industry average.

value

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Pros

  • 505200 outperformed the Auto industry which returned -17.2% over the past year.
  • 505200 matched the India Market (-14.5%) over the past year.
  • BSE:505200 is up 18.3% outperforming the Auto industry which returned 10.7% over the past month.
  • BSE:505200 is up 18.3% outperforming the market in India which returned 8% over the past month.
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Cons

  • Eicher Motors's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
  • Eicher Motors's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
  • Eicher Motors is overvalued based on assets compared to the IN Auto industry average.
  • Eicher Motors is poor value based on expected growth next year.
  • Eicher Motors is overvalued based on earnings compared to the IN Auto industry average.
  • Eicher Motors is overvalued based on earnings compared to the India market.

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