There are very few good companies at moment which have fallen down from cliff. Eicher Motors had fallen down to Rs 15,000 from its Rs21,000 highs just few months ago.

We haven’t seen any major shift in the fundamentals of Eicher motors. Looking at their nine months results the Net sales have climbed up by 33%, EBIT margins are 13% and Net Profits have climbed up by 46%.

So far we have seen a very subdue sales in the 2 wheeler automobile sector and a growth of 33% so far does say that there is a good demand for Eicher Motors products.

Eicher Motors have already upgraded its production capacity and they are sitting up on good cash reserves which they are looking to utilise to tap other markets and also open new retail outlets for their products.

Talking about valuations we think that the price of Eicher Motors have fallen down to its expected 2017 earnings and we have added the shares of Eicher Motors recently.

Aziz Dodhiya is the chief investment officer for the Valueoperations fund.