Sell Eicher Motors, advises Hitesh Goel

Hitesh Goel, senior analyst at Kotak Institutional Equities told CNBC-TV18, "We have a sell rating on Eicher Motors. It has done very well largely because of Royal Enfield. On the VCV side the market share has actually come down but Royal Enfield has done very well. The waiting periods especially on the classic models continue to remain 4-5 months whereas on Bullet and Thunderbird, waiting periods are much less. In certain markets the waiting periods are coming off due to expansion in capacity."

"We have taken a call on this stock more from a longer-term perspective seeing that valuations are very expensive although it is a very good company run by very good management but we don’t foresee Royal Enfield volumes to move to 2 million units in the next five to ten year which is a bull case for this stock. The stock is trading even at a higher multiples to FMCG companies and we don’t see that it can warrant such high multiples. So, it is more of a valuation call although management has executed the strategy pretty well," he said.