This Large-cap automobile stock, engaged in manufacturing motorcycles and commercial vehicles, focusing on innovation, premium segment growth, and delivering high-performance products through its Royal Enfield and VE Commercial Vehicles, is in focus after the company announced an ex-dividend date next week, with a dividend payout of 7,000 percent.
With a market capitalization of Rs. 148,718.76 crore, the shares of Eicher Motors Limited were currently trading at Rs. 5,422.70 per equity share, down nearly 0.91 percent from its previous day’s close price of Rs. 5,472.50.
Eicher Motors Limited is issuing a final dividend of Rs. 70 per equity share, representing a 7,000 percent payout over the face value of Re. 1 per share. The record date for the dividend is set as 1st August 2025. The company has a dividend yield of 1.29 percent.
Eicher Motors Limited is an Indian multinational automotive company headquartered in New Delhi, incorporated in 1982. It is the flagship company of the Eicher Group in India and a prominent player in the Indian automobile industry, manufacturing motorcycles and commercial vehicles.
The company is best known for its Royal Enfield brand, which produces mid-size modern classic motorcycles. Eicher Motors also has a joint venture with the Volvo Group called VE Commercial Vehicles Limited (VECV), which manufactures and markets trucks, buses, and automotive components and provides engineering services.
Eicher Motors Limited’s Royal Enfield has steadily gained domestic market share, with its share in more than 125cc motorcycles rising from 12.6 percent in FY14 to 30.1 percent in FY25, while overall motorcycle market share increased from 2.0 percent to 7.4 percent during the same period.
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Royal Enfield has built a strong premium dealership network across India. As of FY25, the company operates 1,132 large-size stores and 892 smaller studio stores, offering customers access to its products and services in various formats. Additionally, Royal Enfield has expanded its pre-owned motorcycle business, called RE Own, to over 230 cities in India.
In FY25, the company achieved an international sales volume of 100,136 units, a significant increase from 77,209 units compared to FY24. This expansion indicates that demand for its motorcycles is growing in foreign markets. Royal Enfield now holds an 8 percent market share in the Americas and a 9 percent market share in both the APAC and EMEA regions.
Coming into financial highlights, Eicher Motors Limited’s revenue has increased from Rs. 4,256 crore in Q4 FY24 to Rs. 5,241 crore in Q4 FY25, which has grown by 23.14 percent. The net profit has also grown by 27.29 percent from Rs. 1,070 crore in Q4 FY24 to Rs. 1,362 crore in Q4 FY25.
Eicher Motors Limited’s revenue and net profit have grown at a CAGR of 15.57 percent and 20.98 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 29.8 percent and 24.1 percent, respectively. Eicher Motors Limited has an earnings per share (EPS) of Rs. 173, and its debt-to-equity ratio is 0.02x.
Written By – Nikhil Naik
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