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.
The companys top management includes Mr.Inder Mohan Singh, Mr.S Sandilya, Mr.Siddhartha Lal, Mr.Vinod Aggarwal, Mr.Vinod K Dasari, Ms.Manvi Sinha.
Company has S R Batliboi - Co.
LLP as its auditors.
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.