Margins under pressure despite improved mix

Company
14 Nov 2024
5 Min read 
  • Aniket Mhatre revises Eicher Motors estimate
  •  CMP: INR 4,589 TP: INR 4,000 (-13%)
  •  Margins under pressure despite improved mix
  •  Management prioritizes growth over profitability
  •  RE volumes declined 1% YoY, realizations grew 8% YoY
  •  VECV volumes/realizations grew 6%/2% YoY
  •  Retail exports grew 12% YoY in 2Q, ahead of wholesales growth
  •  Bank balances, loans & advances show financial position and liquidity
  •  Current liabilities, sundry creditors indicate short-term obligations
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