Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

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<a href="https://www.smartkarma.com/entities/eicher-motors-ltd" target="_blank" data-smartkarma-citation="entities:18316:1" rel="noopener">Eicher Motors (EIM IN)</a>, through its brand Royal Enfield, is experiencing strong export performance driven by strategic global expansion in the middleweight motorcycle segment. </li>
<li>The unit in Thailand, serves as a key manufacturing hub, with a CKD assembly facility supporting both local and Asia-Pacific markets.</li>
<li>Royal Enfield's focus on retro design and competitive pricing attracts customers in Europe and Brazil, filling a niche left by premium brands.</li>
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Eicher Motors (EIM IN), through its brand Royal Enfield, is experiencing strong export performance driven by strategic global expansion in the middleweight motorcycle segment. 
The unit in Thailand, serves as a key manufacturing hub, with a CKD assembly facility supporting both local and Asia-Pacific markets.
Royal Enfield's focus on retro design and competitive pricing attracts customers in Europe and Brazil, filling a niche left by premium brands.


Eicher Motors (EIM IN) | Why Exports Are on Fire

External broker reports(aggregated public sources), Emkay Global Financial Services Limited

Emkay

External broker reports(aggregated public sources)

Emkay Global Financial Services Limited

Emkay Global Financial Services Ltd. is a leader in the financial services sector, actively creating wealth for our clients for over two decades. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>EIM reported a marginally weaker-than-expected operating performance as its renewed growth focus slightly hurt profitability.</li><li>The company logged a 5% miss on our EBITDA estimate, amid lower ASP (down 2.4% QoQ) and weaker EBITDA margin at 24.2% (down by 100bps QoQ/190bps YoY).</li><li>The lower ASP was driven by a poor product mix (higher share of the Bullet Battalion Black edition), while margins were impacted by higher marketing/festive spends (partially lumpy due to multiple launches in 3Q).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

EIM reported a marginally weaker-than-expected operating performance as its renewed growth focus slightly hurt profitability.The company logged a 5% miss on our EBITDA estimate, amid lower ASP (down 2.4% QoQ) and weaker EBITDA margin at 24.2% (down by 100bps QoQ/190bps YoY).The lower ASP was driven by a poor product mix (higher share of the Bullet Battalion Black edition), while margins were impacted by higher marketing/festive spends (partially lumpy due to multiple launches in 3Q).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Eicher Motors - Soft Q3; Guides to Sustained Volume Growth Momentum

External broker reports(aggregated public sources), Prabhudas Lilladhar

Prabhudas Lilladhar

Prabhudas Lilladher is one of India's leading research based financial services organisation.

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>EIM consolidated revenue for Q3FY25 grew by 19% YoY, 2.3% lower than PLe/BBGe.</li><li>Despite the higher mix of 350cc+ motorcycle and strong exports volume ASP remained flat.</li><li>Gross profit contracted by 90bps YoY to 45.1%.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

EIM consolidated revenue for Q3FY25 grew by 19% YoY, 2.3% lower than PLe/BBGe.Despite the higher mix of 350cc+ motorcycle and strong exports volume ASP remained flat.Gross profit contracted by 90bps YoY to 45.1%.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Eicher Motors - Lack of Price Hike & Promotional Spend Impact Margins

External broker reports(aggregated public sources), Axis Direct

Axis Direct

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>New Product Launches: Eicher Motors pursued an aggressive product launch strategy in Q3FY25, introducing five major models under the Royal Enfield (RE) brand—Bear 650, New Classic 650, Bullet Battalion Black (which received a strong response in the North), Goan Classic 350, and Scram 440.</li><li>Additionally, Royal Enfield unveiled its EV brand Flying Flea, showcasing the FF C6 and FF S6, with production set to begin in Q1FY26 at the Vallam plant, which has an initial capacity of 1,50,000 units per annum.</li><li>International market: RE inaugurated its first wholly owned CKD assembly plant in Thailand, scaling production to 5,000-7,000 units per month, serving as a strategic hub for exports to ASEAN countries and leveraging FTAs.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

New Product Launches: Eicher Motors pursued an aggressive product launch strategy in Q3FY25, introducing five major models under the Royal Enfield (RE) brand—Bear 650, New Classic 650, Bullet Battalion Black (which received a strong response in the North), Goan Classic 350, and Scram 440.Additionally, Royal Enfield unveiled its EV brand Flying Flea, showcasing the FF C6 and FF S6, with production set to begin in Q1FY26 at the Vallam plant, which has an initial capacity of 1,50,000 units per annum.International market: RE inaugurated its first wholly owned CKD assembly plant in Thailand, scaling production to 5,000-7,000 units per month, serving as a strategic hub for exports to ASEAN countries and leveraging FTAs.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Eicher Motors Ltd - Positives Largely Factored in the CMP

<ul><li>New Product Launches: Royal Enfield (RE) introduced new models in Q2 FY25 – the Guerrilla 450 and the 2024 Classic 350 (available with factory-fitted customisation).</li><li>At EICMA 2024, RE launched the Bear 650 and Classic 650 and unveiled its new electric brand, Flying Flea, showcasing the FFC6 electric model focused on urban electric mobility, which is expected to be launched in FY26.</li><li>International market: RE announced plans to establish a second CKD facility in Brazil by December 2024. Globally, RE operates nearly 850 stores across 60+ countries and has CKD units in Bangladesh, Nepal, Brazil, Thailand, Argentina, and Colombia.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

New Product Launches: Royal Enfield (RE) introduced new models in Q2 FY25 – the Guerrilla 450 and the 2024 Classic 350 (available with factory-fitted customisation).At EICMA 2024, RE launched the Bear 650 and Classic 650 and unveiled its new electric brand, Flying Flea, showcasing the FFC6 electric model focused on urban electric mobility, which is expected to be launched in FY26.International market: RE announced plans to establish a second CKD facility in Brazil by December 2024. Globally, RE operates nearly 850 stores across 60+ countries and has CKD units in Bangladesh, Nepal, Brazil, Thailand, Argentina, and Colombia.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Eicher Motors Ltd - New Model Launches to Improve Product Positioning and Drive Growth

India

Eicher Motors Ltd. manufactures light commercial vehicles which are sold domestically and are also exported to other countries. Eicher Motors also manufactures two-wheelers and automotive gears.

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Eicher Motors (EIM IN)