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NSE : EICHERMOTBSE : 505200ISIN CODE : INE066A01013Industry : Automobile Two & Three WheelersHouse : Eicher
BSE19453.00-31.2 (-0.16 %)
PREV CLOSE ( ) 19484.20
OPEN PRICE ( ) 19450.00
BID PRICE (QTY) 0.00 (0)
OFFER PRICE (QTY) 0.00 (0)
VOLUME 10688
TODAY'S LOW / HIGH ( )19357.70 19737.90
52 WK LOW / HIGH ( )12460 23427.75
NSE19447.85-35.4 (-0.18 %)
PREV CLOSE( ) 19483.25
OPEN PRICE ( ) 19500.00
BID PRICE (QTY) 19447.85 (36)
OFFER PRICE (QTY) 0.00 (0)
VOLUME 204423
TODAY'S LOW / HIGH( ) 19350.00 19745.00
52 WK LOW / HIGH ( )12450.1 23450
AnalystNameKriti Sahu
CP1DesignationMD & CEO
CP1NameMr. Siddharth Lal
CP2DesignationCFO & COO
CP2NameMr. Lalit Malik
CP3DesignationCEO, Royal Enfield
CP3NameMr. Vinod Dasari
CallDate06 Dec 2020
DescriptionThe overall demand environment will continue to be uncertain for next couple of months. Royal Enfield will continue to be in the mid-size category for next 5-7 years as the management does not see any drastic shift towards 1000cc motorcycles. The company gained 200bps market share in above 125cc space and its market share stands at 27%. 85-90% dealerships are opened. On-line enquiries have started to pick up in last 2-3 months. The company took price increase of Rs.3000 per motorcycle but it is not sufficient to pass on the full impact of BS-VI. There was Rs.50 odd crores of one offs related to a) vehicle recalls due to faulty brake callipers and b) Foreign exchange fluctuation specifically related to Brazilian subsidiary. The plants are running at close to 40% utilization levels. The management will continue to add studio stores in FY21 as well (expected to add 500-600 stores in FY21). Currently has 600 studio stores as of March 31, 2020. Total touch points stand in India at 1521 stores (921 dealerships and 600 studio stores). There will be product launches (Royal Enfield) every quarter for next 3 years. There has been delay in 1QFY21 launch due to COVID-19. However further launches are expected to be scheduled on time. The product launches will be similar for India as well as overseas. There will be higher capex largely related to product and stores expansion in FY21, but then after there will be sharp decline in capex since FY22 onwards as majority of expenditure has already happened. The company added 35 stores and entered in 3 new geographies in FY20. The total store count stands at 77 and spread across 21 countries. The new geographies are South Korea, Italy and Belgium. VECV The management does not see any meaningful demand in the commercial vehicle space in the near future. CV industry declined by 40%YoY in FY20. VECV revenue declined by 35%YoY to Rs.2101 crores. While EBITDA margin declined by 430bps QoQ to 1.8% in 4QFY20. Market share in Heavy duty segment stands at 5.9% whereas in Light and Medium duty segment stands at close to 30%. Other Details The board has approved the sub-division of equity shares from existing one equity share of face value of Rs.10/- each into ten equity shares of face value of Rs.1/- each. Rationale behind the split: To facilitate larger shareholder base and aid liquidity. Expected time of completion is 2-3 months after obtaining approval of shareholders.


current IPO
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