Eicher Motors (EIM IN): Buy: Demand outlook positive, cost pressure remains

研报英文原文证据摘录

Eicher Motors (EIM IN): Buy: Demand outlook positive, cost pressure remains

30 July 2026

Equities

Autos Eicher Motors (EIM IN)

Buy: Demand outlook positive, cost pressure remains India

◆ 1QFY27 results in line; management expects demand remains MAINTAIN BUY

robust in foreseeable future; uncertain on commodity cost

TARGET PRICE (INR) PREVIOUS TARGET (INR)

◆ Our commodity cost index up by 10% vs 4Q average implies 8,700.00 8,200.00

further RM cost pressure of 100-150 bp in 2Q

SHARE PRICE (INR) UPSIDE/DOWNSIDE

◆ Premiumisation supports outperformance, despite medium-

7,779.00 +11.8% term margin pressure from expansion; raise TP to INR8,700 (as of 29 Jul 2026)

(from INR8,200); maintain Buy

MARKET DATA

Market cap (INRm) 2,135,316 Free float 49%

Market cap (USDm) 22,276 BBG EIM IN

EIM delivered 1QFY27 revenue of INR62bn, EBITDA margin of 24.3%, broadly in line 3m ADTV (USDm) 47 RIC EICH.BO

with HSBCe and Bloomberg consensus. Management remains confident in sustaining

demand momentum, supported by strong enquiries, and channel partners indicate FINANCIALS AND RATIOS (INR)

Year to 03/2026a 03/2027e 03/2028e 03/2029e

similar, with waiting periods of 2-4 weeks across most models. We forecast revenue and HSBC EPS 184.11 207.31 248.45 281.94

EBITDA CAGRs of 13% CAGR over FY26-FY29e. While capacity expansion and ramp- HSBC EPS (prev) 184.11 207.20 248.29 263.39

Change (%) 0.0 0.1 0.1 7.0

up costs are likely to keep margins under pressure the next 2-3 years, these investments Consensus EPS 200.23 224.64 262.36 298.27

should support longer-term growth. We expect Royal Enfield to outperform peers over the PE (x) 42.25 37.52 31.31 27.59

Dividend yield (%) 1.05 0.26 0.26 0.26

coming years, driven by continued premiumization. We maintain our Buy rating on EIM.