Shares of Eicher Motors fell over one percent on August 26 after the chief finance officer resigned, the latest in a string of seniors who have exited the two wheeler maker in the last one year.
“We wish to inform you that Mr Kaleeswaran Arunachalam, chief financial officer and key managerial personnel, has tendered his resignation which will take effect at the close of the working hours on 2 September,” the company said in a filing on August 25.
The firm did not elaborate on reasons for the resignation.
The news sent the stock down about 1.4 percent to Rs 3426.20 as of 9.19 am. The drop comes after a 33 percent jump in the last six months on new launches and improvement in demand.
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The series of exits at the company began with the resignation of Royal Enfield CEO Vinod Dasari in August last year. On his heels, Lalit Malik, chief commercial officer, quit. National business head Pankaj Sharma also resigned.
Analysts, meanwhile, remain positive. HDFC Securities in its recent report said new launches and exports will be growth drivers for the company.
“The firm is seeing strong demand from its key markets. The management believes that, in exports, it is at a stage where they were in the domestic market in FY11, and expect to see sustained growth in the coming years,” said the broker.
However, the recent sharp run-up has diminished any upside. HDFC has a target of Rs 3,333 that has already been met.
ICICI Securities also has a positive view on the stock with a target of Rs 3,695. This translates into an upside of seven percent.
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