Eicher Motors Ltd. was established in 1982. The company is well-known for its commercial vehicles and iconic Royal Enfield motorcycles. Its origins date back to 1948 when the Goodearth Company distributed imported tractors. In 1959, Eicher Tractor Corporation of India Private Ltd. was formed.
The company’s growth has been driven by projects such as the joint venture with Volvo Group and VE Commercial Vehicles (VECV) in recent years.
Let’s discuss Eicher Motors’ stock and financials before comparing it with its competitors.
Eicher Motors’ Financials
Eicher Motor has seen quarter-on-quarter growth in its turnover. In the fourth quarter of the financial year 2023-24, the company sold units worth Rs 4,173. The net profit for this quarter was Rs 1,070. The company’s total liabilities for FY 2023-24 were Rs 19,198.
As of June 24 the Eicher Motors share price is trading at Rs 4,700+
The short and long-term returns which you can see on Eicher Motors share chart are:
- 1-year: 27.30%
- 2-year: 91.46%
- 3-year: 92.84%
- 4-year: 226.34%
- 5-year: 148.37%
Eicher Motor vs Its Competitors
We have already discussed Eicher Motor, now let’s get into the details of its competitors.
1. Tata Motors
Tata Motors caters to cars, commercial vehicles, and defense vehicles. The company captures the market through the following brands:
- Tiago
- Altroz
- Tigor
- Punch
- Nexon
- Harrier
- Safari
With a 75% market share, Tata is also a dominant player in India’s EV market. Moving to financials and returns, in the fourth quarter of the financial year 2023-24, the company generated sales of Rs 1,19,213 crore. Out of this figure, the profit stood at Rs 17,529 crore.
In the last year, investors gained around 81% on their holdings. What’s impressive is the return over the last four years, which stands at 1000.63%. In the previous 52 weeks, the stock traded between Rs 504.75 and Rs 1,065.50. At present, it is priced around Rs 960+.
The dividend yield of Tata Motors is 0.11%.
2. Ashok Leyland
Ashok Leyland is the flagship of the Hinduja Group. The company is a leading Indian multinational automotive manufacturer. Their product range extends from 1T GVW (Gross Vehicle Weight) to 55T GTW (Gross Trailer Weight).
Ashok Leyland has bagged/launched various new projects. Recently, the company disclosed a strategic collaboration with Minus Zero for autonomous trucking solutions.
In the December quarter, the company’s turnover was around Rs 11,045 crore, and the profit for the same duration was Rs 609 crore. Ashok Leyland’s non-current liabilities significantly increased in FY 23-24 compared to FY 22-23. Regarding historical performance, the last one-year return was 30%, while the five-year return stood at 140.18%.
This stock’s dividend yield is 1.31%. At present, it is trading at around Rs 230+.
3. SML ISUZU Ltd.
Established in 1983, the company specializes in the production of light and medium commercial vehicles, including buses, ambulances, and customized vehicles. It is a collab venture between Sumitomo Corporation and Japan’s Isuzu Motors.
Some popular models include the SML Isuzu Sartaj 5252 XM, SML Isuzu Cosmo, and SML Isuzu Sartaj HG 72.
In the quarter of December 2023, SML Isuzu’s revenue was Rs 387.10 crore, with a net profit of Rs 2.68 crore. The company’s last five-year debt-to-ratio is lower than the industry average, which indicates effective debt management.
The last one-year return of SML Isuzu is 115.52%. For the same duration, the stock traded in the range of Rs 930 to Rs 2,480.
Conclusion
When investing in companies catering to the automotive segment, it is best to prefer companies with well-diversified portfolios and keep innovating with their launches to ensure they remain competitive in the trending market.
