Eicher Motors' Q2 Financial Results Show Mixed Performance, MarketsMOJO Gives 'Hold' Call

Eicher Motors, a leading player in the Indian automobile industry, has recently declared its financial results for the quarter ending September 2024. The company, which is a largecap in the two and three wheeler segment, has seen a flat performance in the second quarter of the fiscal year 2024-25.

According to the financial data, Eicher Motors' score has fallen from 10 to 3 in the last three months. However, there are some positive aspects to the company's performance. The operating cash flow for the year has been the highest at Rs 3,723.71 crore and has grown consistently over the last three years. This indicates that the company has been able to generate higher cash revenues from its business operations.

Another positive aspect is the debtors turnover ratio, which has been the highest at 53.58 times in the last five half yearly periods. This shows that Eicher Motors has been able to settle its debtors faster. Additionally, the company has a high dividend payout ratio of 34.90%, indicating that it is distributing a higher proportion of its profits as dividends.

However, there are some areas of concern for Eicher Motors. The profit before tax less other income for the quarter has been the lowest at Rs 1,008.27 crore in the last five quarters. This shows a negative trend in the near term. The non-operating income for the quarter has also been the highest at Rs 353.78 crore, which may not be sustainable in the long run.

Overall, Eicher Motors' financial performance for the quarter ending September 2024 has been flat, with some positive and negative aspects. Based on this, MarketsMOJO has given a 'Hold' call for the company's stock. Investors should carefully consider these factors before making any investment decisions.