Eicher Motors, on November 14, launched Continental GT 650 & Interceptor, which are large bikes from an Indian perspective.
Eicher Motors shares climbed 3 percent intraday Friday as brokerage houses maintained buy call despite likely competition from Jawa, the motorcycle launched by Mahindra & Mahindra on Thursday.
Eicher, on November 14, launched Continental GT 650 & Interceptor, which are large bikes from an Indian perspective, global research firm Citi said.
The company also makes motorcycles in 300cc and more than 350cc segments under its flagship brand Royal Enfield. To compete the same segments, Mahindra & Mahindra launched its two models of Jawa in 300cc and 350cc segments respectively.
"It is too early to predict the impact of the Jawa Bikes on Royal Enfield but there is really no competition for Eicher Motors' twins from Indian original equipment manufacturers (OEMs)," said Citi which maintained buy call on the stock with a target price at Rs 27,300, implying an 14 percent potential upside.
On quoted prices, Royal Enfield will expand this category significantly on a weak base and twins should provide some boost to volumes & profits, it added.
Deutsche Bank said Royal Enfield expanded its addressable market even as Jawa entered its territory. "Twins may not add significantly to volumes but are important for long-term business."
The research house, which retained its buy rating on Eicher Motors with a target price at Rs 28,000, implying potential upside of 17 percent, sees a FY18-21E EPS CAGR of 17 percent and expects Royal Enfield sale of 8.7 lakh units in FY19.At 12:58 hours IST, the stock was quoting at Rs 24,547.90, up Rs 671.15, or 2.81 percent on the BSE.