16 Quarters of above 25% Sales and Profit growth by Eicher Motors

classic350_right-side_blue_600x463_motorcycleEicher Motors declared its December 2014 results yesterday. It had a growth of 56% on sales 66% on profits. This company has been giving above 25% sales and profit growth for the past 16 quarters. This is a tremendous feat, and the same is reflected in its stock price. This stock was at 1300  a share when the company began with its strong growth phase. 4 years have passed now and the stock price is at 16000 a share. Growth of 1250% in 4 years, apart from the the dividend the stock has provided in the same period which amounts to another 127.00 per share.

This company manufactures trucks and mini trucks along with Royal Enfield bullets. Today, bullets have become a fancy possession among the youth of India. The company is investing 500 Crores in a new facility to produce more Royal Enfield bullets and today there is a wait period for a new purchase and it has a premium too. On the roads, if we travel a kilo meter, out of 10 mini trucks and trucks that ply on the city 8 would be of Eicher motors make. With more new facilities coming up, it looks like the growth story is going to continue further.

In the year 2014, this stocks has delivered 200% profits. On 1st January 2014, the stocks was quoted at Rs. 4992.00, on 31st December 2014 it was Rs. 15103.00. We have a 3% exposure to this stock in our portfolio, it will continue to be in our portfolio till the companies growth slows down.