[ad_1]
Eicher Motors share worth: Eicher Motors shares remained beneath strain for the third straight session on Thursday, July 6 amid a big enhance in competitors. On the time of penning this report, the inventory was buying and selling 2.70 per cent decrease at Rs 3,220.50 on the BSE. It hit a low of Rs 3,207.55 through the commerce.
In the meantime, HDFC Securities has downgraded the inventory to REDUCE from ADD with a goal worth of Rs 3,086 from Rs 3,310 earlier. During the last two days, each Harley Davidson (in partnership with Hero MotoCorp) and Triumph (in partnership with Bajaj Auto) have launched cruiser bikes at extraordinarily aggressive and comparable worth factors, that are marginally larger than Royal Enfield’s best-selling Classic350cc (Chrome), analysts on the brokerage be aware.
“What leaves us confused is the truth that whereas pricing is aggressive, each gamers appear to have very restricted capability to begin with. We therefore imagine that that is prone to be introductory pricing and unlikely to be sustainable in the long term for the options/manufacturers on supply. Nonetheless, Royal Enfield (RE) can be compelled to rethink its pricing/model technique in a short time, which is able to in flip drive margin strain,” the brokerage mentioned in its report dated July 6.
The brokerage additional mentioned that it expects RE to be in a a lot better place to struggle again as soon as this aggressive pricing stabilises. “Nevertheless, if these aggressive worth factors maintain for a higher-than-expected time, it will result in additional draw back dangers to our estimates,” it added.
[ad_2]
Source link
