Eicher Motors falls 3% as Royal Enfield sales drop at home, abroad

September 2023 exports for Royal Enfield (RE) stood at 4,300 units compared to 1QFY24 average of 6,800 units.

Eicher Motors fell more than 3 percent to Rs 5,026 on October 3 after a 4 percent year-on-year fall in the sales of Royal Enfield bikes in India -- the company's biggest revenue earner -- in September.

The maker of the Royal Enfield sold 78,580 motorcycles in the previous month against 82,097 in September 2022. Overseas sales fell by half to 4,319 units in September 2023 from 8,451 in the same month in 2022.

Eicher’s total commercial vehicles sales jumped to 7,198 units during the month, up 8.6 percent year on year.

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Sales of Royal Enfield with engine capacity of up to 350cc declined about 5 percent YoY — from 74,206 units in September 2022 to 70,345 in September 2023.

But, for models exceeding the 350cc capacity, the sales were up 4 percent at 8,235 units.

Royal Enfield exports stood at 4,300 units compared to 1QFY24 average of 6,800.

Industry-wide domestic two-wheeler wholesales improved 3 percent YoY and Motilal Oswal expects this trend to sustain on account of peak festival season.

The brokerage expects inventory levels to remain healthy at six-seven weeks.

Also Read | TVS Motor shares edge up after a 6% growth in Sept sales

Eicher Motors technicals

Eicher Motors stock has gained around 3 percent this year. Technicals show that the stock's relative strength index (RSI) stands at 55.3, implying that it's trading neither in the overbought nor the oversold territory.

The 1-year beta of Eicher Motors stands at 0.89, implying low volatility.

At 10.28 am, the stock was trading at Rs 3,325.55, down 3.52 percent from the previous close.

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