HDFC Securities: Eicher Motors - ‘Meteor’ To Drive Sales; Valuations Remain Expensive

HDFC Securities: Eicher Motors - ‘Meteor’ To Drive Sales; Valuations Remain Expensive

Royal Enfield Meteor 350 adds to the legacy of Royal Enfield’s cruiser motorcycles—Citybike, Lightning 535 and the Thunderbird—launched since the 1990s. (Image: Company website)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

HDFC Securities Report

Eicher reported Q2 FY21 PAT at Rs 3.4 billion (-34% YoY, up sharply QoQ).

The OEM has rolled out the ‘Meteor 350cc’ on a new platform along with personalisation options (MIY), which is expected to be a ‘differentiator’. The new launch comes at a time when the competition is increasing – the Honda H’ness CB350 has just been launched.

We the RE business at 23x PE, which is at a 25% premium to the mass market OEMs.

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HSIE Results Daily - 13 Nov 20 - Eicher Motors.pdf
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