Mumbai: Shares of Eicher Motors fell as much as 5% as the company reported a consolidated loss of ₹55.2 crore for the quarter ended June against a profit of ₹451.8 crore in the corresponding period of the last fiscal.
At 12:15 pm, Eicher Motors stock was trading at ₹20769.70, down 4.16% from its previous close, while the benchmark index, Sensex gained 0.33% to 38437.72.
Consolidated revenue declined significantly by 65.6% YoY to ₹818.2 crore in the quarter. Hit by lockdown, volumes fell sharply though the company saw good demand recovery towards the end of the quarter.
Analysts at Motilal Oswal in a result note said, "New products would help expand the addressable markets and drive the next phase of growth for Royal Enfield. New product launches are expected in coming months. Future product launches are on track, and timelines for these have not changed."
"Bookings have sustained at pre-covid-19 levels for the last six to eight weeks, convincing the management that this is not just pent-up demand. The stock trades at 42.5 times FY2021E consolidated earnings per share," it added.
The brokerage has a buy rating on the stock.
At operating level, consolidated earnings before interest, tax, depreciation and ammortisation (Ebitda) dropped 99.4% to ₹3.8 crore and margin contracted sharply to 0.5% in June quarter compared to 25.8% in the corresponding period last year.
Analysts at Emkay Global Financial Services said "Expect 2Wheeler volume recovery ahead, supported by a healthy order-book, new products and focus on network expansion. We expect a volume cumulative annual growth rate (CAGR) of 10% over FY2020-2023E. The market share in domestic 2Wheelers is likely to improve from 3.8% in FY2020 to 4.4% in FY2023E and estimate revenue/earnings CAGR of 14%/17% over FY2020-2023, with 25 times price earnings for motorcycle business."
The brokerage has a buy rating on the stock.
Eicher Motors has fixed August 25 as the record date for determining the eligibility of members for the purpose of sub-division of each equity share of the face value of ₹10 each into 10 equity shares of face value of Re 1 each.
