Sector Update| 1 May 2018
Automobiles
Maruti Suzuki
CMP: INR8,792
Stock Info
Bloomberg
MSIL IN
Equity Shares (m)
302
M.Cap. (INR b)/(USD b)
2,656/39.6
52-Week Range (INR) 10000 / 7088
1, 6, 12 Rel. Per (%)
-1/-5/10
Financials Snapshot(INR b)
Y/E MARCH
2018 2019E 2020E
Sales
797.6 937.7 1,098.5
EBITDA
123.1 149.3 185.8
Adj. PAT
79.0 103.9 132.4
Adj. EPS
(INR)*
266.7 349.9 444.8
EPS Gr. (%)
7.3 31.2
27.1
BV/Sh. (INR) 1,382 1,606 1,894
RoE (%)
18.5 21.4
23.1
RoCE (%)
27.3 29.9
32.1
Valuations
P/E (x)
33.0 25.1
19.8
EV/EBITDA (x) 18.7 15.1
11.7
Div. Yield (%)
0.9
1.1
1.4
*Cons.
Snapshot of volumes for May-18
YoY
Company Sales
Maruti Suzuki
LCVs
Vans
Mini Segment
Compact (incl Dzire
Tour)
Mid Size - CIAZ
UVs
Total Domestic
Export
May-18 May-17
172,512 136,962
1,703
428
16,717 12,593
37,864 39,089
77,263 51,234
4,024
4,724
25,629 22,608
163,200 130,676
9,312
6,286
MoM
YoY (%)
MoM
Apr-18
FY19 YTD
chg
(%) chg
26.0 172,986 -0.3 345,498
297.9
1,544
10.3
3,247
32.7
15,886
5.2
32,603
-3.1
37,794
0.2
75,658
50.8
-14.8
13.4
24.9
48.1
83,834
5,116
20,804
164,978
8,008
-7.8
-21.3
23.2
-1.1
16.3
FY18 YTD
288,177
839
26,531
77,986
Residual
Monthly
FY19
(%) chg
Gr. (%)
Run rate
estimate
19.9 2,000,993 12.4 165,549
287.0
12,040
20.0
879
22.9
162,894
5.0
13,029
-3.0
453,713
6.2
37,805
40.3
-22.2
7.4
19.3
33.1
882,076
61,859
279,858
1,876,439
124,554
17.8
5.0
10.3
13.5
-1.2
FY19 YTD
Monthly
Run rate
172,749
1,624
16,302
37,829
TP: INR10,468(+19%)
Buy
Dispatches of 172.5k units exceed estimate of 165.5k units
Domestic sales grew 24.9% YoY, while exports rose 48.1% YoY
MSIL’s May-18 wholesales came in above our estimate at 172.5k units (+26% YoY, -
0.3% MoM).
Domestic volumes grew 24.9% YoY to 163.2k (est. of 156.5k), led by growth in the UV
(+13.4% YoY) and compact (+50.8% YoY) segments.
Growth in the compact segment was led by new Swift, Baleno and new Dzire, while
that in UVs was led by Brezza and new S-cross.
Ciaz sales declined 14.8% YoY to 4k units (est. of 4.7k units).
Export volumes were better than estimate at 9.3k units (+48.1% YoY, +16.3% MoM).
The stock trades at 25.1x/19.8x FY19E/20E earnings. Maintain Buy.
161,097 114,818
9,140
11,748
46,433 43,246
328,178 275,168
17,320 13,009
72,098 80,549
5,272
4,570
23,342 23,217
154,826 164,089
10,723
8,660
Jinesh Gandhi - Research analyst
(Jinesh@MotilalOswal.com); +91 22 3982 5416
Research analyst: Deep Shah
(Deep.S@MotilalOswal.com); +91 22 61291533/
Suneeta Kamath
(Suneeta.Kamath@MotilalOswal.com); +91 22 61291534
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Automobiles | Update
Mahindra & Mahindra
CMP: INR902
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INR b)/(USD b)
52-Week Range (INR)
1, 6, 12 Rel.Per (%)
MM IN
1209
1073/16
932 / 613
3/21/13
TP: INR1,026(+14%)
Buy
Wholesales in-line at 76.2k units
UV volumes up 10.4% YoY, Tractor volumes up 13.9% YoY
Financials Snapshot (INR b)
Y/E MARCH
2018 2019E 2020E
Sales
486.9 553.5 614.0
EBITDA
62.2 73.3
81.9
NP*
43.2 50.3
56.5
Adj.EPS(INR)* 36.3 42.3
47.4
EPS Gr. (%)
22.7 16.5
12.2
Cons.EPS(INR) 40.2 49.3
54.0
BV/Sh. (INR) 254.6 284.4 319.0
RoE (%)
14.2 14.8
14.8
RoCE (%)
13.0 13.8
13.9
Valuations
P/E (x)
24.8 21.3
19.0
P/BV (x)
3.5
3.2
2.8
EV/EBITDA (x) 16.6 14.0
11.1
*incl. MVML
MM’s volumes grew 12.6% YoY to 76.2k units (in-line) in May-18.
Tractors sales increased 13.9% YoY to 29.3k units (est. of 31.5k), led by a rise of 14% in
domestic volumes and 9% YoY in export volumes.
UV sales (incl. pick-ups) grew 10.1% YoY to 40.5k units (in-line).
Momentum in pick-ups continued with 11% YoY growth, while passenger utility
vehicles growth was flat YoY at 19.3k units.
LCV (>3.5t) and M&HCV sales declined 17% YoY and 163% YoY, respectively.
3W volumes increased 7% YoY to 4.4k units (est. of 4.5k units).
Speaking on the monthly performance, Rajan Wadhera, President, Automotive Sector,
M&M Ltd. said, “May has relatively been a subdued month compared to April. At
Mahindra, we have by and large maintained our growth momentum during the month
of May 2018, especially in commercial vehicles. On the back of a buoyant economy,
our MHCV division continues to outperform. Exports have also been strong with high
growth. With the forecast of an upcoming normal monsoon, we are confident of good
growth in the coming months”.
Speaking on the monthly tractor performance, Rajesh Jejurikar, President, Farm
Equipment Sector, M&M Ltd. said, “We have sold 28,199 tractors in the domestic
market during May 2018, a growth of 14% over same month last year. We hope that
the announcement of record production estimates for food grains and horticulture
crops will drive positive sentiments and boost tractor demand. In the exports market,
we have sold 1,131 tractors, a growth of 9% over May 2017.”
The stock trades at 21.3x/19x FY19E/20E. Maintain Buy.
Snapshot of volumes for May-18
YoY
Company Sales
Mahindra & Mahindra
UV (incl. pick-ups)
LCV & M&HCV
Three-Wheelers
Tractors
May-18 May-17
76,179
40,509
1,985
4,355
29,330
67,752
36,796
1,150
4,057
25,749
MoM
YoY (%)
MoM
FY19 YTD
Apr-18
chg
(%) chg
12.4 79,022
-3.6 155,201
10.1 42,302
-4.2
82,811
72.6
1,468
35.2
3,453
7.3
4,327
0.6
8,682
13.9 30,925
-5.2
60,255
FY18 YTD (%) chg
133,320
72,075
1,850
7,495
51,900
16.4
14.9
86.6
15.8
16.1
FY19
estimate
961,341
534,576
20,288
57,356
349,121
Residual FY19 YTD
Monthly Monthly
Gr. (%)
Run rate Run rate
10.9
12.0
17.8
5.0
10.0
80,614
45,177
1,683
4,867
28,887
77,601
41,406
1,727
4,341
30,128
2 April 2018
2

Automobiles | Update
Tata Motors
CMP: INR287
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INR b)/ (USDb)
52-Week Range (INR)
1, 6, 12 Rel.Per (%)
TTMT IN
3396.6
917.5/14.5
486 / 282
-16/-35/-53
TP: INR471(+64%)
Buy
Wholesales at 57.9k units, above estimate of 55.5k
CV sales in-line, PV sales above estimates
Financials Snapshot(INR b)
Y/E MARCH
2018 2019E 2020E
Net Sales
2,946 3,386 3,738
EBITDA
369.7 468.2 537.0
NP
77.8 146.6 179.6
Adj. EPS (INR) 22.9 43.2
52.9
EPS Gr. (%)
15.7 88.3
22.6
BV/Sh. (INR) 281.0 325.4 379.6
RoE (%)
10.1 14.2
15.0
RoCE (%)
6.4
7.4
8.1
Valuations
P/E (x)
12.5
6.7
5.4
P/BV (x)
1.0
0.9
0.8
EV/EBITDA (x)
3.2
2.5
1.9
Tata Motors’ May-18 sales volumes grew 51.2% YoY to 57.9k units, above our
estimate of 55.5k units.
PV segment sales increased 60.8% YoY to 17.6k units (est. of 16k units), as UV volumes
grew 5.5x to 6.1k units (est. of 6.5k units) due to healthy demand for Nexon.
Car segment volumes grew 17.3% YoY to 11.5k units (est. of 9.5k units).
Total CV volumes increased 47.3% YoY to 40.4k units (in-line).
M&HCV volumes grew 69.3% YoY to 17.4k units (in-line).
LCV volumes increased 34.2% YoY to 22.9k units (est. of 22k units).
The stock trades at 6.7x/5.4x FY19E/20E consol. EPS. Maintain Buy.
Snapshot of volumes for May-18
Company Sales
Tata Motors
HCV's
LCV's
CV's
Cars
UV's
MoM
YoY (%)
MoM
FY19
May-18 May-17
Apr-18
FY19 YTD FY18 YTD (%) chg
chg
(%) chg
estimate
57,994
17,410
22,985
40,395
11,546
6,053
38,361
10,286
17,131
27,417
9,840
1,104
51.2
69.3
34.2
47.3
17.3
448.3
56,521
18,271
20,912
39,183
10,676
6,662
2.6 114,515
-4.7 35,681
9.9 43,897
3.1 79,578
8.1 22,222
-9.1 12,715
69,334
16,517
28,099
44,616
21,888
2,830
65.2
116.0
56.2
78.4
1.5
349.3
740,091
213,684
306,424
520,109
154,098
65,885
YoY
Residual FY19 YTD
Monthly Monthly
Gr. (%)
Run rate Run rate
15.9
11.2
19.5
15.9
12.2
24.7
62,558
17,800
26,253
44,053
13,188
5,317
57,258
17,841
21,949
39,789
11,111
6,358
2 April 2018
3

Automobiles | Update
Bajaj Auto
CMP: INR2,893
Stock Info
Bloomberg
Equity Shares (m)
M.Cap. (INR b) / (USD b)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
BJAUT IN
289.4
837.2/12.5
3473 / 2695
-2/-17/-11
2020E
308
61.9
55.5
192
14.7
817
24.7
31.9
15.1
3.5
9.9
2.8
TP: INR3,450 (+19%)
Buy
Dispatches of 407k units exceed estimate of 369k units
Domestic volumes grew 29% YoY, exports up 30.6% YoY
BJAUT’s May-18 sales increased 29.7% YoY to 407k units, above our estimate of 369k
units.
Domestic volumes grew 29% YoY at 224.6k units (est. of 206k units) and exports grew
30.6% YoY at 182.4k units (163k units).
Overall motorcycle volumes increased 23.6% YoY. Domestic motorcycle dispatches
increased 23% YoY to 192.5k units. Motorcycle exports grew 24.4% YoY to 150k units.
3W volumes remained strong, with overall growth of 75.9% YoY.
Domestic 3W volumes maintained the positive momentum, growing 83.1% YoY to
32.1k units. 3W exports grew 69.3% YoY to 32.4k units.
The stock trades at 17.3x/15.1x FY19E/20E consol. EPS. Maintain Buy.
Financial & Valuation (INR b)
Y/E MARCH
2018 2019E
Sales
252
275
EBITDA
47.8 53.3
Consol. NP
43.8 48.4
ConsEPS(INR)
151
167
EPS Gr. (%)
7.3 10.5
BV/Sh. (INR)
660
733
RoE (%)
24.2 24.0
RoCE (%)
22.0 21.9
Valuation
P/E (x)
19.1 17.3
P/BV (x)
4.4
3.9
EV/EBITDA (x) 13.7 11.9
Div. Yield (%)
2.1
2.4
Snapshot of volumes for May-18
YoY
Company Sales
Bajaj Auto
Motorcycles
Total Two-Wheelers
Three-Wheelers
Domestic
Exports
May-18 May-17
407,044
342,595
342,595
64,449
224,625
182,419
313,756
277,115
277,115
36,641
174,047
139,709
MoM
YoY (%)
MoM
Apr-18
chg
(%) chg
29.7 415,168 -2.0
23.6 349,617 -2.0
23.6 349,617 -2.0
75.9
65,551
-1.7
29.1 229,464 -2.1
30.6 185,704 -1.8
FY19 YTD FY18 YTD (%) chg
822,212
692,212
692,212
130,000
454,089
368,123
643,556
571,047
571,047
72,509
351,934
291,622
27.8
21.2
21.2
79.3
29.0
26.2
FY19
estimate
4,342,169
3,683,021
3,683,021
659,148
2,472,048
1,870,121
Residual
Monthly
Gr. (%)
Run rate
8.4
351,996
9.3
299,081
9.3
299,081
3.4
52,915
5.5
201,796
12.5 150,200
FY19 YTD
Monthly
Run rate
411,106
346,106
346,106
65,000
227,045
184,062
2 April 2018
4

Automobiles | Update
Eicher Motors
CMP: INR29,789
Stock Info
Bloomberg
EIM IN
Equity Shares (m)
27.2
M.Cap.(INR b)/(USD b)
812/12.1
52-Week Range (INR) 33484/26000
1, 6, 12 Rel.Per (%)
-5/-6/-10
Financials Snapshot(INR b)
Y/E MARCH
2018 2019E 2020E
Net Income
89.6 107.7 129.4
EBITDA
28.1
35.1
43.8
Net Profit
21.8
28.6
36.7
Adj. EPS (INR) 799.6 1,050.3 1,347.1
EPS Gr. (%)
27.0
31.3
28.3
BV/Sh. (INR) 2,579 3,424 4,538
RoE (%)
35.2
35.0
33.8
RoCE (%)
30.1
30.3
30.6
Valuations
P/E (x)
37.3
28.4
22.1
P/BV (x)
11.6
8.7
6.6
EV/EBITDA (x) 22.7
17.8
13.7
TP: INR35,572 (+19%)
Buy
Royal Enfield dispatches in-line at 74.5k units
VECV’s volumes of 5.9k above estimate of 4.3k
Royal Enfield (RE) dispatches grew 23.1% YoY to 74.5k units (est. of 77.5k units).
RE’s domestic sales grew 23.6% YoY to 72.5k units, while exports rose 6.7% YoY at 2.2k
units.
VECV May-18 volumes of 5.9k units were above our estimate of 4.3k units.
Domestic LMD and HD segments grew 37.6% YoY and 104.4% YoY, respectively. Buses
volume increased marginally by 2.6% YoY.
VECV exports grew 3.4% YoY to 606 units (est. of 586 units).
The stock trades at 28.4x/22.1x FY19E/20E consol. EPS. Maintain Buy.
Snapshot of volumes for May-18
Eicher Motors
Royal Enfield
VECV
Domestic LMD
Domestic HD
Domestic Buses
Total Domestic
Exports
May-18
74,697
5,904
2,757
1,022
1,489
5,298
606
Residual FY19 YTD
YoY (%)
FY19
YoY (%)
MoM
May-17
FY19 YTD FY18 YTD (%) chg
Monthly Monthly
Apr-18
estimate
chg
(%) chg
chg
Run rate Run rate
60,696
4,574
2,003
500
1,451
3,988
586
23.1
29.1
37.6
104.4
2.6
32.8
3.4
76,187
3,959
1,840
726
823
3,409
550
-2.0
49.1
49.8
40.8
80.9
55.4
10.2
150,884 120,838
9,863
7,663
4,597
3,181
1,748
856
2,312
2,495
8,707
6,578
1,156
1,085
24.9
28.7
44.5
104.2
-7.3
32.4
6.5
951,016
76,654
37,957
14,228
12,487
65,853
10,801
15.9
16.3
15.0
15.0
19.0
13.6
20.0
80,013
6,679
3,336
1,248
1,017
5,715
965
75,442
4,932
2,299
874
1,156
4,354
578
2 April 2018
5

Automobiles | Update
Hero MotoCorp
CMP: INR3,624
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INR b)/ (USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
HMCL IN
199.7
723.7/10.8
4200 / 3354
-3/-7/-16
TP: INR4,052(+12%)
Neutral
Volumes up 10.7% YoY to 706k, above estimate of 670k
Third month of 700k+ sales
Financials Snapshot (INR b)
Y/E MARCH
2018 2019E
Sales
322.3 365.9
EBITDA
52.8 58.8
NP
37.0 40.2
Adj. EPS (INR) 185.1 201.2
EPS Gr. (%)
9.5
8.6
BV/Sh. (INR)
589.3 664.0
RoE (%)
33.8 32.1
RoCE (%)
32.5 30.9
Valuations
P/E (x)
19.6 18.0
P/BV (x)
6.1
5.5
EV/EBITDA (x)
12.3 10.9
Div. Yield (%)
2.6
2.9
2020E
402.9
65.7
45.9
229.1
13.9
752.9
32.4
31.3
15.8
4.8
9.6
3.2
HMCL’s May-18 volumes grew 10.7% YoY to 706,365 units (est. of 670k).
For the first two months of FY19, the growth rate remain healthy at 13.5% YoY,
indicating healthy rural demand.
This is the third month of 700k plus sales by HMCL, with the two previous months
being March 2018 (730,473) and September 2017 (720,739).
HMCL trades at 18/15.8x FY19E/20E EPS. Maintain Neutral.
Snapshot of volumes for May-18
Company Sales
Hero MotoCorp
MoM
Residual FY19 YTD
Monthly Monthly
YoY (%)
FY19
MoM
May-18 May-17
Apr-18
FY19 YTD FY18 YTD (%) chg
Gr. (%)
Run rate Run rate
chg
(%) chg
estimate
706,365 638,196
10.7 694,022
1.8 1,400,387 1,233,902
13.5 8,530,300
12.4 712,991 700,194
YoY
2 April 2018
6

Automobiles | Update
Ashok Leyland
CMP: INR151
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INR b)/ (USDb)
52-Week Range (INR)
1, 6, 12 Rel.Per (%)
AL IN
2,827.1
441.4/6.6
168 / 90
-8/18/52
TP: INR181 (+20%)
Buy
Dispatches of 13.7k units above estimate of 12.1k units
MHCVs grew 69.6% YoY and LCVs grew 10.4% YoY
Financials Snapshot(INR b)
Y/E MARCH
2018 2019E 2020E
Sales
260.4 308.0 360.6
EBITDA
28.4 35.6
42.8
NP
15.9 21.2
26.9
Adj. EPS (INR)
5.4
7.2
9.2
EPS Gr. (%)
28.8 33.1
27.1
BV/Sh. (INR)
23.9 28.5
34.7
RoE (%)
24.3 27.6
29.2
RoCE (%)
20.3 23.3
25.2
Valuations
P/E (x)
30.2 22.7
17.9
P/BV (x)
6.9
5.8
4.7
EV/EBITDA (x)
16.5 12.6
9.9
Div. Yield (%)
1.2
1.4
1.5
AL’s May-18 wholesale dispatches grew 50.5% YoY to 13.7k units (est. of 12.1k units).
M&HCV volumes, which account for 76% of total volumes, grew 69.6% YoY (+16.2%
MoM) to 10.4k units (est. of 8.1k units).
LCVs grew 10.4% YoY to 3.2k units (est. of 4k units).
The stock trades at 22.7x/17.9x FY19E/20E EPS, and at 12.6x/9.9x EV/EBITDA.
Maintain Buy.
Snapshot of volumes for May-18
Company Sales
Ashok Leyland
CV (ex LCV)
LCV
MoM
YoY (%)
MoM
FY19
May-18 May-17
Apr-18
FY19 YTD FY18 YTD (%) chg
chg
(%) chg
estimate
13,659
9,075
50.5 12,677
7.7
26,336 16,158
63.0
198,135
10,421
6,143
69.6
8,968
16.2
19,389 10,668
81.7
146,395
3,238
2,932
10.4
3,709
-12.7
6,947
5,490
27
51,740
YoY
Residual FY19 YTD
Monthly Monthly
Gr. (%)
Run rate Run rate
13.3
11.4
19.1
17,180
12,701
4,479
13,168
9,695
3,474
2 April 2018
7

Automobiles | Update
TVS Motor
CMP: INR 596
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INR b)/ (USDb)
52-Week Range (INR)
1, 6, 12 Rel.Per (%)
TP: INR635 (7%)
Neutral
TVSL IN
475.1
283/4.2
Domestic sales grew 2.6% YoY; exports up 53.2% YoY
795 / 525
-11/-25/-2
TVSL’s May-18 came in line at 309.9k units (+9.9% YoY).
Wholesales in-line at 309.9k units
Financials Snapshot (INR b)
Y/E MARCH
2018 2019E 2020E
Sales
151.3 184.5 220.7
EBITDA
11.3 16.4
22.4
Adj. PAT
6.6
9.4
13.7
EPS (INR)
13.9 19.7
28.8
EPS Gr. (%)
18.7 41.5
46.1
BV/Sh (INR)
60.6 75.5
98.2
RoE (%)
25.1 29.0
33.2
RoCE (%)
24.1 30.1
36.8
Valuations
P/E (x)
42.7 30.2
20.7
P/BV (x)
9.8
7.9
6.1
EV/EBITDA (x)
26.2 17.9
12.9
Div. Yield (%)
0.6
0.7
0.8
Domestic volumes grew 2.6% YoY, while exports (20% of volumes) rose 53.2% YoY.
Motorcycle volumes grew 7.4% YoY to 126.7k units (est. of 130k units).
Scooter volumes increased 11.9% YoY to 95.8k units (est. of 90k units).
Moped dispatches rose 5.3% YoY to 75.5k units (est. of 75k units).
3W volumes increased 78.2% YoY with growth across domestic and export sales.
The stock trades at 30.2x/20.7x FY19E/20E EPS. Maintain Neutral.
Snapshot of volumes for May-18
YoY
Company Sales
TVS Motor
Motorcycles
Scooters
Mopeds
Three-Wheelers
Total Domestic
Total Exports
May-18 May-17
309,865 282,007
126,711 118,014
95,879 85,681
75,545 71,731
11,730
6,581
247,647 241,390
62,218 40,617
MoM
YoY (%)
MoM
Apr-18
chg
(%) chg
9.9 304,795
1.7
7.4
131,704 -3.8
11.9
89,245
7.4
5.3
72,469
4.2
78.2
11,377
3.1
2.6
242,997
1.9
53.2
61,798
0.7
FY19 YTD FY18 YTD
614,660
258,415
185,124
148,014
23,107
490,644
124,016
528,317
217,904
167,124
131,405
11,884
447,479
80,838
Residual FY19 YTD
Monthly Monthly
FY19
(%) chg
Gr. (%)
Run rate Run rate
estimate
16.3 4,110,028 18.6 349,537 307,330
18.6 1,673,698 21.1 141,528 129,208
10.8 1,396,162 23.0 121,104 92,562
12.6
923,390
5.3
77,538 74,007
94.4
116,778
18.3
9,367
11,554
9.6 3,369,181 16.5 287,854 245,322
53.4
740,847
23.3
61,683 62,008
2 April 2018
8

Automobiles | Update
Escorts
CMP: INR935
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INR b)/ (USDb)
52-Week Range (INR)
1, 6, 12 Rel.Per (%)
ESC IN
3395.9
115/1.7
1019 / 545
-7/28/22
TP: INR982(+5%)
Neutral
Wholesales of 8.3k units above estimate of 7.8k
Domestic sales increased 19.5% YoY to 8.1k units
Financials Snapshot(INR b)
Y/E MARCH
2018 2019E 2020E
Net Sales
50.6 58.5
66.9
EBITDA
5.5
7.0
8.6
NP
3.5
4.7
5.8
Adj. EPS (INR) 39.5 52.4
65.5
EPS Gr. (%)
88.0 32.5
25.0
BV/Sh. (INR) 249.2 293.3 350.5
RoE (%)
18.3 19.3
20.3
RoCE (%)
18.3 19.3
29.4
Valuations
P/E (x)
23.7 17.9
14.3
P/BV (x)
3.8
3.2
2.7
EV/EBITDA (x) 14.5 11.3
8.7
Escorts tractor dispatches grew 20.9% YoY to 8.3k units, above estimate of 7.8k units.
Domestic sales grew 19.5% YoY to 8.1k units.
Exports grew 105.2% YoY to 238 units.
The stock trades at 17.9x/14.3x FY19E/20E EPS. Maintain Neutral.
Snapshot of volumes for May-18
YoY
Company Sales
Escorts
May-18
8,325
MoM
YoY (%)
MoM
FY19
May-17
FY19 YTD FY18 YTD (%) chg
Apr-18
chg
(%) chg
estimate
6,886
20.9
6,186
34.6
14,511 11,785
23.1
92,480
Residual FY19 YTD
Monthly Monthly
Gr. (%)
Run rate Run rate
15.0
7,797
7,256
2 April 2018
9

Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
> - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
Automobiles | Update
*In case the recommendation given by the Research Analyst becomes inconsistent with the investment rating legend, the Research Analyst shall within 28 days of the inconsistency, take appropriate measures to make the recommendation consistent with the investment rating legend.
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2 April 2018
10