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)

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

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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 value 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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