Rs 30,00,00,00,000 project: High ROE & high ROCE automobile stock in green after the company signs MoU with Government of Tamil Nadu – Details inside!
From Rs 492.18 per share to Rs 3,919.25 per share, the stock gave multibagger returns of 696.3 per cent in just 1 decade.
Royal Enfield, a unit of Eicher Motors Limited (EML) and global leader in the middle-weight motorcycle segment signed a non-binding Memorandum of Understanding (MoU) with the Government of Tamil Nadu at Global Investors Meet 2024, at Chennai.
Under the MoU, Eicher Motors proposed to invest around Rs 3,000 crore for 8 years into the state to set up greenfield and brownfield projects in the region. This investment will be majorly used for the development of new products, EVs (product development and capacity building) and also additionally for any capacity enhancement for ICE, whenever required. This investment is anticipated to create employment opportunities for up to 2,000 individuals, both directly and indirectly, further contributing to the socio-economic growth of the state of Tamil Nadu.
Key provisions of the MoU include the Government of Tamil Nadu’s assurance of necessary infrastructural support and regulatory facilitation under applicable laws. The government will also prioritise providing uninterrupted power supply and other essential infrastructure support on a best-effort basis to the company.
Eicher Motors Limited, incorporated in 1982, is the listed company of the Eicher Group in India and a leading player in the Indian automobile industry and the global leader in middleweight motorcycles. The company have a market cap of over Rs 1 lakh crore and has been maintaining a healthy dividend payout of 34.5 per cent.
The net sales increased by 16.9 per cent and the net profit increased by 49.3 per cent in Q2FY24 over Q2FY24. In FY23, net sales increased by 40.20 per cent and net profit rose by 73.80 per cent compared to FY22. The shares of the company have an ROE of 22 per cent and an ROCE of 27.4 per cent.
Today, shares of Eicher Motors Ltd surged 0.90 per cent to an intraday high of Rs 3,919.25 per share. From Rs 492.18 per share to Rs 3,919.25 per share, the stock gave multibagger returns of 696.3 per cent in just 1 decade. Investors should keep an eye on this automobile stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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