Stocks

Eicher Motors plunges on Q4 miss, loses over $550 mn in market value

Reuters | Updated on May 13, 2019 Published on May 13, 2019

Eicher Motors Ltd shares plunged nearly 7 per cent to their lowest since January 31.

At the day's low of Rs 18,920, the stock lost Rs 3,913 crore ($556.14 million) in market capitalisation.

The maker of Royal Enfield (RE) motorcycles posted an 18.1 per cent jump in quarterly consolidated profit but missed street estimates.

Brokerage CLSA cut FY20-21 EPS estimate by 12-14 per cent, saying it expects weak volume growth in the near term due to soft demand and rising cost from upcoming BS VI emission norms.

CLSA says RE's under-performance in the premium bike segment is a concern; cuts PT to Rs 22,500 from Rs 23,900, keeps “outperform” rating.

Jefferies analysts cut EBITDA estimates by 3-8 per cent over FY19-21 to reflect weaker volumes and margins but higher realisation. Jefferies cuts PT to Rs 23,400 from Rs 23,700; keeps “buy” rating.

Volumes of RE bikes to slide in Q1 FY20 as transition to new emission norms will raise costs, hurting volumes, according to Equiris.

The stock posted its biggest intra-day per cent fall in over 4 months; down 12 per cent so far this year.

Published on May 13, 2019
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