Eicher Motors Limited

All successful investors have one thing in common. They are passionate in reading the annual reports of several businesses including the ones they don’t want to invest in the near future. Consider the case of Warren Buffett, who was reading the annual reports of IBM and Bank of America for 50 years before buying a single share. Why would anyone do that? Click here to read the rest.

14 thoughts on “Eicher Motors Limited

    • Thanks Ragu. Looking forward to meet you end of April at the Mecca of investing.

      Regards,
      Jana

  1. Good one ! Keep it up!

    On Saturday 16 January 2016, Seeking Wisdom wrote:

    > Jana Vembunarayanan posted: “All successful investors have one thing in > common. They are passionate in reading the annual reports of several > businesses including the ones they don’t want to invest in the near future. > Consider the case of Warren Buffett, who was reading the annual rep” >

  2. Hi jana
    Your blog are always a good read on weakends.
    My colleagues had bought and are using thunderbird since last 1-2years. But they are facing quite some issues. Not happy with after sales service. Some of other colleagues dropped buying these based on their experience.
    May not be a good idea to buy this business without any margin of safety.
    Bajaj can give a tough fight to them in coming years. Only time will tell.

    Keep writing. Always enjoyed and learned lot from your blogs.

    Kashif
    Bangalore.

    • Kashif,

      Happy to hear that I am adding value. Thanks for sharing your thoughts on EML.

      Regards,
      Jana

  3. Hi Jana,

    Thanks for another excellent contribution !! I know this is not the right place to ask this question but i am curious to know the type of NRI demat account you are using to invest in individual Indian securities.

    Regards,
    Balaji

    • Balaji,

      Thanks. I don’t think there is any special type. Just call ICICI or HDFC and they should guide you.

      Regards,
      Jana

  4. Hi Jana,

    Very good one specially the qualitative analysis part. I have a small (elementary) doubt regarding the first table. I could able to get how invested capital, ROIC, Profitability are arrived. But I don’t know how the metric ‘efficiency’ arrived (is it simply ROIC/operating margins?) and what does that metric actually mean?. Can you please help me to understand?

    Also i recently started taking baby steps in blogging – https://antinvestor.wordpress.com – would greatly appreciate your feedback.

    Thanks
    Jagadees

    • Jagadees,

      Thanks for taking time to read and comment. Efficiency measures for $1 of invested capital how much sales a company is generating. It helps to break down the components of ROIC and helps us to see if margins or efficiency or both makes the company to generate high returns.

      Take AMZN for example. It has high ROIC, if one capitalizes its R & D expense. The main driver is not margins but efficiency as it is using float to fund its operations. So its efficiency is very high.

      I will take a look at your blog very soon.

      Regards,
      Jana

  5. Hello Sir,

    Thanks for this great write up.

    I read your two other write ups about Markel Corporation and Nestle. On the last page you mentioned the name of some books like “We are Like That Only” or “Understanding the Insurance Industry”.

    Are there some books for understanding the Automobile Industry, which you would suggest to read
    If there are, please let me know.

    Regards,
    Anubhav

    • Hi Anubhav,

      Thanks. I haven’t read any books on this industry. If I come across then I will let you know.

      Regards,
      Jana

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