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Eicher Motors Limited (505200) Fair Value & Analysis

Other · IN · Market cap ₹599B

EM Eicher Motors Limited 505200 · BSE
Price₹7,340
Fair Value₹6,859
Upside-6.6%
Quality64/100
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Healthy Growth
Solidly profitable · 14.6% net margin
Low debt
0.99% dividend yield
Ranks above peers (8/13)
Moderate moat 54/100
Evidence: High Range ₹5,145 – ₹13,600 Share as image

Fair value as of: Jul 4, 2026

From 26 valuation models · updated 34 days ago

Share price +3.1% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The model range is unusually wide (₹5,145 to ₹13,600). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
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Price vs Fair Value (5 years)

₹8,192 ₹2,162 Fair Value ₹6,859 Feb 2021 Jul 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 4, 2026.

How to read this chart

60‑month range ₹2,162 – ₹8,192 · fair‑value band ₹5,145 – ₹13,600 · the ₹7,340 price screens above the ₹6,859 fair value. Dashed = 300-day average. As of Jul 4, 2026.

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Analysis

Eicher Motors Limited (505200) currently trades at ₹7,340, while our model-based Fair Value estimate is ₹6,859, implying the stock looks roughly 6.6% fairly valued today. We read business quality at 64/100 (solid quality), in the Other sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Eicher Motors Limited generated revenue of ₹74.9B at a net margin of 14.6%. Revenue declined 3.7% year over year. The stock trades on a trailing P/E of 63.0. Fundamentals as of Jul 4, 2026

Our scenario range runs from ₹5,145 (bear case) to ₹13,600 (bull case); at ₹7,340, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 11% below its 52-week high and 39% above its 52-week low. For context, the median of 10 Other peers we cover trades at -16% fair-value upside, at -7%, 505200 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ₹5,044 ₹9,411 ₹17,502 80
Residual Income ₹4,013 ₹5,368 ₹27,244 76
Rev-Margin DCF ₹4,375 ₹7,763 ₹12,268 74
All 26 models by family
DCF Models
FCF DCF ₹5,102 ₹9,898 ₹18,949 38
Owner Earnings ₹7,674 ₹14,890 ₹28,509 31
5Y Revenue Exit ₹4,375 ₹7,869 ₹12,694 39
5Y EBITDA Exit ₹5,232 ₹9,683 ₹15,387 41
5Y P/E Exit ₹7,238 ₹13,931 ₹21,822 38
10Y Revenue Exit ₹4,425 ₹7,923 ₹13,469 36
10Y EBITDA Exit ₹5,163 ₹9,304 ₹15,837 37
10Y P/E Exit ₹6,538 ₹12,538 ₹21,496 35
Earnings-Based
Graham-Dodd ₹3,947 ₹20,013 ₹27,641 54
Lynch FV ₹5,437 ₹7,767 ₹10,097 50
PEG = 1.0 ₹5,437 ₹7,767 ₹10,097 46
EPV ₹4,254 ₹5,003 ₹5,670 59
Dividend Discount
Gordon GGM ₹1,648 ₹3,598 ₹6,054 70
DDM Multi-Stage ₹1,648 ₹2,947 ₹3,750 61
Multiples
P/E Multiple ₹8,707 ₹11,610 ₹14,512 63
P/S Multiple ₹4,338 ₹5,784 ₹7,230 58
P/B Multiple ₹5,875 ₹7,833 ₹9,792 55
EV/EBIT ₹6,614 ₹8,817 ₹11,020 53
EV/EBITDA ₹5,650 ₹7,532 ₹9,413 54
EV/Revenue ₹4,053 ₹5,788 ₹7,524 43
Asset-Based
NCAV (Graham) ₹1,306 ₹1,749 ₹2,611 50
Growth DCF
Growth DCF ₹5,044 ₹9,411 ₹17,502 80
Rev-Margin DCF ₹4,375 ₹7,763 ₹12,268 74
Economic Profit
Residual Income ₹4,013 ₹5,368 ₹27,244 76
ROIC Compounder ₹4,928 ₹6,976 ₹9,855 72
Growth Earnings
Growth-Adj P/E ₹8,035 ₹11,479 ₹14,922 68

Widest divergence: Growth Earnings (₹11,479) versus Asset-Based (₹1,749). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) ₹74.9B
Revenue growth (YoY) -3.7%
Net margin 14.6%
P/E ratio 63.0
Operating margin 14.5%
EPS (TTM) ₹39.97
More key figures
Dividend yield 1.0%
EPS growth (YoY) -40.0%

Figures from reported company fundamentals · as of Jul 4, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 64/100

Of which business quality 64 · Market factors (momentum, volatility) 66

Profitability 76
Margins and returns on capital today
Quality Growth 50
Are margins and returns improving?
Cashflow 54
Earnings quality: real cash, not paper profit
Fin. Strength 80
Balance sheet, leverage, solvency risk
Investment 30
Disciplined investing over empire-building
Low Volatility 76
Calm price path (market factor)
Momentum 57
Price trend over the last 3–12 months (market factor)
52W Momentum 70
Distance to the 52-week high (market factor)
Net Issuance 81
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Eicher Motors Limited manufactures and sells motorcycles and commercial vehicles in India and internationally. The company owns the Royal Enfield motorcycle brand that offers Classic, Bullet, Himalayan, Interceptor INT 650, Continental GT 650, and Thunderbird models.

Full company description

Eicher Motors Limited manufactures and sells motorcycles and commercial vehicles in India and internationally. The company owns the Royal Enfield motorcycle brand that offers Classic, Bullet, Himalayan, Interceptor INT 650, Continental GT 650, and Thunderbird models. It designs, develops, manufactures, assembles, and sells two-wheelers, as well as sells related parts and accessories. The company, through its joint venture, Volvo Eicher Commercial Vehicles Limited, manufactures and sells light and medium duty trucks, heavy duty trucks, and buses under the Eicher brand; Volvo trucks; and engineering components and aggregates. Eicher Motors Limited was founded in 1948 and is based in Gurugram, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Eicher Motors Limited reported revenue of ₹189B in FY2025 versus ₹87.2B in FY2021, a compound +21.3%/yr. Reported net income was ₹47.3B in FY2025, compounding +36.9%/yr from FY2021.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
₹189B
Latest YoY
+14.1%
Avg. growth/yr (3Y)
+22.4%
Avg. growth/yr (5Y)
+15.6%
Avg. growth/yr (10Y)
+8.0%
Revenue +21.3%/yr
FY21 ₹87.2B
FY22 ₹103B
FY23 ₹144B
FY24 ₹165B
FY25 ₹189B
Net income +36.9%/yr
FY21 ₹13.5B
FY22 ₹16.8B
FY23 ₹29.1B
FY24 ₹40.0B
FY25 ₹47.3B

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Cite: Fair Value Calculator (2026). "Eicher Motors Limited Fair Value". https://www.fairvalue-calculator.com/stock/505200

Peer Group

Other · 325 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 64 · Top 25%
Fair Value upside −7% · Above median
Return on assets 5% · Top 25%
Net margin (TTM) 15% · Top 25%
Operating margin (TTM) 15% · Top 25%
Revenue growth -4% · Bottom 25%
Dividend yield (TTM) 1.0% · Above median
Debt / equity 0.01× · Lower than median

Valuation Multiples vs Other median · lower = cheaper

P/E (TTM) 63.0× · Pricier than 75% of peers
P/B 2.81× · Pricier than 75% of peers
P/S (TTM) 8.00× · Pricier than 75% of peers
EV/EBITDA 42.0× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 25 · sector 4
FUTURE 0 · sector 0
PAST 0 · sector 0
HEALTH 100 · sector 97
DIVIDEND 20 · sector 0

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Lupin Limited 500257 ₹2,476 ₹2,372 -4%
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Frequently asked questions

Is Eicher Motors Limited (505200) overvalued or undervalued?
As of Jul 4, 2026, our model estimates a fair value of ₹6,859 versus a price of ₹7,340, about −7% (fairly valued).
What is the fair value of 505200?
Our model-based fair value for Eicher Motors Limited is ₹6,859 (as of Jul 4, 2026), built from audited fundamentals. The current price is ₹7,340.
What is the quality score of 505200?
Eicher Motors Limited has a Quality Score of 64/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Eicher Motors Limited (505200)?
Eicher Motors Limited reported trailing-twelve-month revenue of about ₹74.9B (latest available figure, as of Jul 4, 2026).
What is the net profit margin of 505200?
The net profit margin of Eicher Motors Limited is about 14.6%, meaning it keeps roughly 14.6% of revenue as net income. Based on the latest reported figures.
Does Eicher Motors Limited pay a dividend?
Eicher Motors Limited currently shows a dividend yield of about 0.99% relative to its recent price (as of Jul 4, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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