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Today's prices ask more of Eicher Motors than of Bajaj Auto.
At current prices, buyers of Bajaj Auto are assuming about 7% growth against 19% in its own record; for Eicher Motors it is 22% against 19%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: both on discounted cash flow.
- Size: Bajaj Auto is worth about 1.4 times Eicher Motors on the stock market.
- Record: On revenue the two have grown at much the same pace: Bajaj Auto compounded at about 12% a year (FY2018–FY2026) and Eicher Motors at about 12% (FY2018–FY2026).
- What to watch: export demand at Bajaj Auto; royal enfield volumes at Eicher Motors.
| Bajaj Auto | Eicher Motors | |
|---|---|---|
| Price | ₹10,850 | ₹7,650 |
| Market cap | ₹2.98L Cr | ₹2.10L Cr |
| P/E | 22.8 | 35.1 |
| P/B | 7.68 | 8.37 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Discounted cash flow | Discounted cash flow |
01Two businesses
Motorcycles, three-wheelers and exports
Bajaj Auto makes motorcycles such as the Pulsar, Platina and Dominar, the Chetak electric scooter and India's best-selling three-wheelers. It also builds and sells motorcycles in partnership with KTM and Triumph.
Royal Enfield, and trucks with Volvo
Eicher Motors owns Royal Enfield, the motorcycle brand behind the Classic, Bullet, Hunter, Meteor and Himalayan, which dominates India's mid-size (250–750cc) segment and sells a growing number of bikes abroad, including its 650cc twins.
02The records side by side
On revenue the two have grown at much the same pace: Bajaj Auto compounded at about 12% a year (FY2018–FY2026) and Eicher Motors at about 12% (FY2018–FY2026). By revenue, Bajaj Auto is about 2.7 times the size of Eicher Motors. Bajaj Auto kept 16.8% of revenue as net profit in FY2026; Eicher Motors kept 23.6% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: Bajaj Auto · Eicher Motors.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Export demandExports are a big share of volumes, and currencies in markets such as Nigeria can swing them sharply.
- Premium motorcyclesHigher-priced models carry better margins than commuter bikes.
- Royal Enfield volumesGrowth in the 350cc segment and exports sets the pace.
- Pricing powerRoyal Enfield's brand lets it raise prices with less impact on demand.
05What could go wrong
- Emerging-market currenciesDevaluations hit export volumes and margins.
- EV competitionStart-ups and incumbents are crowding the electric scooter market.
- Competition in mid-size bikesRivals have launched models aimed directly at Royal Enfield's buyers.
- Export marketsOverseas demand and currencies can be volatile.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is Bajaj Auto or Eicher Motors better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, Bajaj Auto trades at 22.8 times earnings and 7.68 times book value, and Eicher Motors at 35.1 times earnings and 8.37 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between Bajaj Auto and Eicher Motors?
Bajaj Auto makes motorcycles such as the Pulsar, Platina and Dominar, the Chetak electric scooter and India's best-selling three-wheelers. Eicher Motors owns Royal Enfield, the motorcycle brand behind the Classic, Bullet, Hunter, Meteor and Himalayan, which dominates India's mid-size (250–750cc) segment and sells a growing number of bikes abroad, including its 650cc twins.
Are Bajaj Auto and Eicher Motors valued the same way?
Yes — both on discounted cash flow, so their workings compare like for like.
What does today's price assume for Bajaj Auto and Eicher Motors?
Worked backwards from the share price, Bajaj Auto needs about 7% growth and Eicher Motors about 22% growth, against 19% and 19% in their own records.