AI Summary
✦ ClarthaEicher Motors is an automobile company manufacturing motorcycles and commercial vehicles in India and international markets. Royal Enfield motorcycles, parts, accessories, riding gear, and lifestyle apparel drive the two-wheeler business, while commercial vehicles provide the second segment. Q1 FY27 revenue rose 31.5% to ₹6,632 crore, supporting growth while a ₹1,225 crore greenfield plant could expand future capacity. Profit grew 16.5%, below 23.9% revenue growth, indicating declining margins and weaker earnings conversion. Debt/equity of 2.05 means leverage amplifies ROE, although ROE is not provided. At 38.2x earnings, the stock appears rich versus its growth rate, with margin compression and plant execution as key risks. Neutral sentiment reflects limited valuation support despite stronger recent revenue momentum.
Valuation Metrics
Trading 62.2% above historical median. Valuation is rising — currently in the strongly overvalued zone (z-score: +1.95). Confidence: 74%.
Live forward EPS implies next-12-month EPS of ₹271.64. Applying the stock's normalized valuation corridor produces a fair range of ₹5,799.51 to ₹8,839.17, with base value near ₹6,394.41 (-19.8% vs current price).
Live forward estimate anchored to the company's historical valuation corridor.
Forward EPS
₹271.64
Forward P/E
29.4x
Base Fair Value
₹6,394.41
Fair Range
₹5,799.51 - ₹8,839.17
Upside To Base
-19.8%
Estimate Source
Live forward EPS
Growth Estimate
+21.3%
5Y Average
21.17
Current
38.17
Overvalued
32.54
Undervalued
21.35
5Y Average
20.61
Current
36.96
Overvalued
24.87
Undervalued
14.58
5Y Average
4.91
Current
8.80
Overvalued
5.92
Undervalued
3.47
Peers & Comparison
Sector: Industrials · Theme: Trucks & Buses
| Company | Rev. Growth | Margin | P/E | vs Avg | 52W Perf. |
|---|---|---|---|---|---|
HINDALCO INDUSTRIES LTD HINDALCOMetals - Aluminium | +32.1% | 5.5% | 14.3x Undervalued | -67% vs avg | +57.5% |
CG POWER AND IND SOL LTD CGPOWERHeavy Electrical Equipments | +14.0% | 9.8% | 111.1x Premium | +159% vs avg | +32.2% |
DR. REDDY S LABORATORIES DRREDDYPharmaceuticals | -5.6% | 10.0% | 29.2x Undervalued | -32% vs avg | -3.9% |
HERO MOTOCORP LIMITED HEROMOTOCOTwo Wheelers | +34.9% | 10.7% | 21.5x Undervalued | -50% vs avg | +25.5% |
BAJAJ AUTO LIMITED BAJAJ-AUTOTwo Wheelers | +64.0% | 16.3% | 27.7x Undervalued | -35% vs avg | +40.9% |
BSE LIMITED BSEStock Exchanges & Ratings | +64.0% | 48.9% | 52.3x Premium | +22% vs avg | +44.3% |
APOLLO HOSPITALS ENTER. L APOLLOHOSPHospitals & Diagnostic Centres | +18.1% | 7.7% | 66.0x Premium | +54% vs avg | +23.2% |
HCL TECHNOLOGIES LTD HCLTECHIT Services & Consulting | +3.0% | 13.0% | 21.1x Undervalued | -51% vs avg | -8.8% |
EICHER MOTORS LTD trades in line with peers (38.0x vs avg 42.9x), reflecting a fair valuation within the Trucks & Buses cohort. Peers include HINDALCO INDUSTRIES LTD, CG POWER AND IND SOL LTD, DR. REDDY S LABORATORIES — selected based on business model, industry classification, market cap similarity, and business theme alignment.
Financials
Real statement data for revenue, earnings quality, conversion, and balance-sheet coverage. Monetary values are shown in Rs crore.
Latest revenue
₹6.21K CrJun 2026Latest net profit
₹1.51K CrJun 2026Latest EPS
₹54.89Jun 2026Net margin
24.0%Jun 2026Performance
Bars show revenue and net profit. The line shows net margin.
- Revenue
- Net income
- Net margin %
Earnings
Revenue is shown in crores. EPS is rupees per share.
- Revenue
- EPS
Revenue to profit conversion
Bridge from operating numbers to profit for the latest reported period.
Latest reported period: Jun 2026
Debt level and coverage
Debt, cash and free cash flow compared on the same crore scale.
- Debt
- Free cash flow
- Cash & equivalents
Results
| Metric | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales + | 3,901 | 3,931 | 4,054 | 4,192 | 4,231 | 4,205 | 4,908 | 5,107 | 4,908 | 5,902 | 5,988 | 5,901 | 6,214 |
| Expenses + | 2,888 | 2,833 | 2,939 | 3,037 | 3,053 | 3,101 | 3,684 | 3,846 | 3,677 | 4,433 | 4,398 | 4,378 | 4,703 |
| Operating Profit | 1,013 | 1,097 | 1,115 | 1,155 | 1,179 | 1,105 | 1,224 | 1,261 | 1,231 | 1,469 | 1,590 | 1,523 | 1,510 |
| OPM % | 26% | 28% | 28% | 28% | 28% | 26% | 25% | 25% | 25% | 25% | 27% | 26% | 24% |
| Other Income + | 335 | 276 | 250 | 307 | 417 | 337 | 300 | 354 | 659 | 340 | 284 | 357 | 727 |
| Interest | 3 | 5 | 5 | 6 | 4 | 5 | 6 | 9 | 7 | 7 | 7 | 7 | 7 |
| Depreciation | 135 | 131 | 138 | 155 | 158 | 169 | 168 | 189 | 186 | 188 | 199 | 216 | 262 |
| Profit before tax | 1,209 | 1,238 | 1,221 | 1,302 | 1,433 | 1,268 | 1,350 | 1,418 | 1,697 | 1,614 | 1,668 | 1,657 | 1,968 |
| Tax % | 24% | 24% | 25% | 24% | 24% | 20% | 22% | 21% | 23% | 25% | 23% | 25% | 23% |
| Net Profit + | 914 | 938 | 914 | 983 | 1,088 | 1,010 | 1,056 | 1,125 | 1,306 | 1,208 | 1,290 | 1,236 | 1,507 |
| EPS in Rs | 33.42 | 34.28 | 33.38 | 35.91 | 39.71 | 36.85 | 38.53 | 41.04 | 47.64 | 44.04 | 47.03 | 45.07 | 54.89 |
| Raw PDF |
All values in ₹ Crores unless otherwise stated. Source: Screener Master (Standalone).
Events Timeline
Announcement under Regulation 30 (LODR)-Earnings Call Transcript
Announcement under Regulation 30 (LODR)-Monthly Business Updates
Announcement under Regulation 30 (LODR)-Monthly Business Updates