First Read Eicher Motors Q1FY27: Beat and raise performance; Buy

研报英文原文证据摘录

First Read Eicher Motors Q1FY27: Beat and raise performance; Buy

h Cons.

Despite these cost headwinds, EBITDA exceeded both our and street estimates by 5%. 03/27E 239.81 245.68 2 224.64

VECV reported Q1 revenue of Rs 66.1bn, with EBITDA margins at ~8.4%. 03/28E 279.46 285.56 2 262.36

03/29E 331.83 320.02 -4 298.28

Key earnings call highlights

Pramod Kumar

1) As per management, growth continues to be broad-based across the 350cc portfolio,

Analyst

while 450cc and 650cc models have recovered to pre-GST volume levels, supported by pramod.kumar@ubs.com

product refreshes and upcoming launches; 2) RE has already ramped production to +91-22-6155 6063

5,000+ motorcycles/day, with installed capacity reaching ~1.5mn units annually with

Vedant Kshatriya

new module kicking in from October; 3) Overall channel inventory remains lean at ~10–

Associate Analyst

12 days, reflecting strong retail demand and supply constraints rather than demand vedant.kshatriya@ubs.com

weakness; 4) Management highlighted that the company, along with its vendor base, is +91-22-6155 6008

planning to operate on a 24x7, three-shift schedule to build inventory ahead of the

festive season; 5) Customer acquisition remains healthy, with ~70% of buyers being

upgraders from other brands and ~25% first-time buyers; the Hunter 350 continues to

attract a high proportion of new entrants to the RE ecosystem; 6) The company

continues to deepen its international footprint through subsidiaries, CKD operations

and potential localization initiatives.

Valuation: Maintain Buy with a new PT of Rs9,100

We value RE at 24x 1Y forward EV/EBITDA and VECV at 15x 1Y forward EV/EBITDA (vs.

13x earlier), aligning VECV’s target multiple more closely with peers such as TMCV and

Ashok.