Volume growth was hit due to overall weakness and subdued customer sentiments in the auto sector led by rise in ownership costs because of mandatory long-term insurance and regulatory safety requirement.
Kotak expects consolidated adjusted net profit to decline 19 percent YoY led by weak performance of both Royal Enfield and VECV
Net Sales are expected to decrease by 4.9 percent Y-o-Y (up 2.7 percent Q-o-Q) to Rs. 2,405.2 crore, according to Prabhudas Lilladher.
Auto universe is expected to report a 28 percent YoY PAT decline on a modest base – a fourth consecutive quarter of double-digit PAT decline, Motilal Oswal said
Jefferies maintained its buy rating on Eicher Motors and slashed its target price to Rs 23,100 from Rs 27,100 earlier. The global investment bank also slashed its revenue estimates over FY19-21 by 2-6 percent.
In terms of Royal Enfield's quarterly performance, it registered volume decline of 5.9 percent on a YoY basis.
Net Sales are expected to increase by 10.3 percent Y-o-Y (up 3.9 percent Q-o-Q) to Rs. 2,502.9 crore, according to Motilal Oswal.
We continue to exude confidence in the company on the back of its dominant position in bikes with engine displacement above 250cc and a shift in customer preference towards premium products. The recent correction have made valuations attractive
The company reported a 6 percent increase in consolidated profit after tax at Rs 548.76 crore in the second quarter ended September 30.
Brokerages also expect good profits from associates to boost its financials.
Net Sales are expected to increase by 10.3 percent Y-o-Y (down 6.2 percent Q-o-Q) to Rs. 2,390.6 crore, according to Prabhudas Lilladher.
Net Sales are expected to increase by 25.4 percent Y-o-Y (down 0.7 percent Q-o-Q) to Rs. 2,509.2 crore, according to Kotak.
The business provides limited upside at the current levels. Hence, we advise investors to wait for any weakness in stock prices to accumulate.
Analysts expect VECV realisations at Rs 15.73 lakh per unit against Rs 15.99 lakh unit in year-ago.
Net Sales are expected to increase by 25.2 percent Y-o-Y (up 9.8 percent Q-o-Q) to Rs. 2197.6 crore, according to Edelweiss.
Riding on the strength of Royal Enfield, Eicher Motors has yet again posted a healthy set of numbers for the quarter ended June 2017. But after the dream performance and an equally impressive run for the stock, should you be chasing it now?
The total income could rise 15 percent at Rs 2,012 crore against Rs 1,754 crore posted during the same quarter in the last year.
Net Sales are expected to increase by 4.6 percent Q-o-Q (up 27 percent Y-o-Y) to Rs 1975.2 crore, according to Edelweiss. Eicher Motors to report net profit at 543.7 crore up 44.5% year-on-year.
Brokerage houses largely bet on volume growth for Royal Enfield after it commences its third plant in August along with gain in market share into new cities as well.
Royal Enfield maker could post an increase of 25 percent in revenues at Rs 1,925.4 crore against Rs 1,532.2 crore
Commercial vehicle makers bore the brunt of the Supreme Court ban on sale of Bharat Stage-III vehicles from April 1 even as car companies went relatively unscathed.