Moneycontrol PRO
Upcoming Event:Attend Algo Convention Live, 2 Days & 12+ Speakers at best offer Rs.999/-, exclusive for Moneycontrol Pro subscribers. Register now!

Eicher Motors declines 2% on BofAML downgrade, target price cut

The brokerage lowered its FY20 EPS estimate by 11 percent and EBITDA margin forecast to 27.8 percent for FY21 against 30.6 percent in FY19.

March 29, 2019 / 11:19 AM IST
File image

File image

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Eicher Motors shares declined 1.8 percent Friday intraday after Bank of America Merrill Lynch downgraded the stock and cut price target sharply citing dealer stress.

The stock fell nearly 27 percent in last one year. It was quoting at Rs 20,699.45, down Rs 182.15, or 0.87 percent, on the BSE, at 10:40 hours IST.

BofAML has downgraded Eicher Motors to underperform and slashed price target by 27 percent to Rs 19,000 from Rs 26,000 earlier.

The global investment firm said channel checks suggest dealer stress has risen for first time and volumes are down 20-30 percent at dealer level.

Same-store-sales growth has declined 20-30 percent in some cases versus 3 percent growth year-to-date, it added.

Close

Hence, the brokerage lowered its FY20 EPS estimate by 11 percent and EBITDA margin forecast to 27.8 percent for FY21 against 30.6 percent in FY19.

The company's Royal Enfield sales dropped 14 percent to 62,630 units February 2019, compared to 73,077 units sold in same period last year, but exports increased 49 percent year-on-year to 2,564 units.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.



Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Moneycontrol News
first published: Mar 29, 2019 10:56 am
Sections
ISO 27001 - BSI Assurance Mark