Comments
Equirus Securities
Eicher Motors (Sell)
CMP: ₹20,123
Target: ₹18,702
We attended Eicher Motors’ global analyst meet and visited the UK Technology Centre. The UK and Chennai Technology centres have enabled the company to come up with better designed and tested products, wherein post-launch issues are almost nil (unlike previous model launches, viz Himalayan). In the domestic market, Royal Enfield plans to increase penetration and has announced new small-format Studio Stores for rural areas; it also plans to capture more of customer spends on motorcycles over their life cycle. In exports, Royal Enfield is looking at aggressive network expansion in Thailand and Brazil in FY20, and higher volumes in the US given solid growth in the mid-size motorcycle segment.
We maintain ‘short’ with a June 2020 target price of ₹18,702 as some improvement is already built into our numbers.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.