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Eicher

Enfield reports 24% drop in sales of Motorcycles in August 2019

By General Posts

Eicher Motors Ltd has announced the sales figures of motorcycles for the month of August 2019. The company has sold 52,904 motorcycles during August 2019, as compared to 69,377 units in August 2018, a drop of 24% YoY.

The company has sold 44694 units of models with engine capacity upto 350cc in August 2019 as against 65712 units in August 2018, registering a drop of 32% YoY.

The company has sold 8210 units of models with engine capacity exceeding 350cc during August 2019 as compared to 3665 units in August 2018, a growth of 124% YoY.

Exports stood at 4152 units in August 2019 as against 1363 units in August 2018, a growth of 205% YoY.

Shares of EICHER MOTORS LTD. was last trading in BSE at Rs.16260.35 as compared to the previous close of Rs. 16544.4. The total number of shares traded during the day was 3816 in over 1555 trades.

The stock hit an intraday high of Rs. 16652.25 and intraday low of 15985.95. The net turnover during the day was Rs. 62267233.

Source: Equity Bulls

No silver bullet in sight for Enfield hit by sliding volume

By General Posts

The Eicher Motors stock fell 30 per cent in the past year.

The Bullet, it appears, is just not firing on all cylinders at the moment.

Royal Enfield (RE) sales are rather soft, and state-wise volume statistics furnished by industry body SIAM show that the bike that defines panache for motorcycle enthusiasts in India is riding through a rather rough patch. Eight states that make up three of every five RE bikes sold locally have reported deceleration.

Maharashtra and Karnataka together account for 13 per cent of RE volumes, and these two states have seen a drop in 6-7 quarters of the past nine.

Kerala, the largest market of RE, has witnessed volume drops of 13 per cent and 23 per cent in the September and December quarters, respectively. The September decline is attributed to floods. But declines in the December quarter have put the lens on underlying demand.

Industry volume growth of twowheelers in south India was 9.5 per cent in the first nine months, up from 5.6 per cent in the previous year. However, RE’s sales volume growth in the Southern states has been underwhelming.

The RE management has given production guidance of 8.7-8.8 lakh units for the current fiscal year. However, it is unlikely to be met. Average monthly run-rate of RE in the first 11months of FY19 stood at 69,569 units. To achieve the stated guidance, the company needs to produce 1.04 lakh vehicles in March. This appears to be quite a daunting task given the weak demand cycle.

The Street is factoring in volume growth of 10 per cent for FY20, which could be trimmed due to about 3 per cent growth in FY19. The Eicher Motors stock fell 30 per cent in the past year following constant negative surprises on the volume front. The stock is trading at 21 times FY20 earnings, compared with the long-term average of 30 times.