INSUBCONTINENT EXCLUSIVE:
Ambit Capital has retained buy rating on Eicher Motors and raised target price in the long term to Rs 24,673 against Rs 23,059 earlier
The stock ended down 1.7% at Rs 21359.65 on Tuesday while BSE Sensex closed 126.72 points down at 40,675.45.
Company FinancialsFor the
quarter ended 30-09-2019, the company has reported consolidated sales of Rs 2171.54 crore, down -8.03% from last quarter sales of Rs 2361.24
crore and down -9.34 % from last year same quarter sales of Rs 2395.22 crore
The company has reported net profit after tax of Rs 564.39 crore in latest quarter
Company has S R Batliboi - Co
As on 30-09-2019, the company has a total of 27,289,722 shares outstanding
Investment RationaleAfter wholesales declined around 22% over February-September 2019, Royal Enfield has around 17 days inventory and
clocking flat to mid-single digit yearon-year decline in retails, said Ambit
Interaction with dealers suggests around 20% rise in monthly retails vs pre-festive demand, even without help of lower priced
Bullet-X/Classic-S, the brokerage said
Royal Enfield would deliver around 12% volume CAGR in FY20-22, post around 11% decline in FY20, said Ambit.