By the way, Single platform that you asked in your question, is a lean manufacturing concept. They have a single platform on which they can make many variants of bikes, For example classic 350, classic 500 which can obviously share same platform since most of the design is common to them except engine or some other thing like chassis for better stability. But if you can manage to build some other variant like, Thunderbird also on the same platform, then you are practicing lean manufacturing. You save a lot of cost and resources in that. You arrange your machinery in such a way that if you replace few of the machinery on the same platform, then you are good to go for another bike assembly. hope it will be a little clear to you.
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Eicher released Royal Enflied Sales for July 2015
Total 40760 Units (include Export: 893, <350 CC: 36452 units, >350 CC: 4308 units)
YOY Growth 49.2%
MOM Growth: 9.2%
First time company monthly sales 40,000 with great sequential growth. Good quarter to start with.
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@empower_the_lo_
In case you like stock, I would suggest buy at least 1 share. Track the price movement and newsflow. In my opinion, stock investing is also like swimming. Just by watching other swimmer sitting aside the pool, one can not learn swim. Same apply to stock. Having said that, like a new trainer always wear floater, do not jump with full investment amount which you intend to invest in company.
In nutshell, invest at least a share if you like the idea. I do not see any split in the company. In one interview, Siddharth Lal had almost said (or I understood it that way) that I would issue bonus/split share if it improve my operating efficiency next minutes !!! Too an extent, I appreciate Mr. Lal also for that approach.
Discl: At current price of around 19K, stock is already trading at very high PE. Please take your due diligence and take investment decision.
Since you are more experienced member on the board, you may give your thought.
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Wah…Well said Dhiraj. Company has a great future no doubt. Although I cant say the same thing about the stock with equal confidence.
I am getting a sense that expensive stocks such as Page, Gruh (both which I hold) are getting into time correction mode. Gruh has already spent some time at these levels. Page after correcting from 16500+ is grinding near 14000 levels. I have seen same thing with Mayur and Astral (2 of my other holdings – man, my PF going to underperform a lot this year !)
And I feel that Eicher after correcting from 21500 may get into this phase. The fall in stocks getting into time correction is usually much quicker than the rise. They will keep oscillating near the bottom levels for some time waiting for earnings to catch up. This could be anywhere from 3-6 months and upwards. We will need to watch what the level will be in Eicher. What can prevent a protracted time correction (or a deep fall) in Eicher is that its vehicle sales numbers are reported monthly, which gives good idea about company’s performance, unlike in other companies where we usually have to wait for a quarter. 40% plus sales growth will keep the interest in Eicher alive every month!
I agree with Dhiraj’s suggestion of buying 20-30% of one’s intended allocation and then buying the dips (sorry for sounding like a TV expert)
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VE commercial vehicles July sales news came out
Slight uptick overall but on similar lines to past month(s)
http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/305B2E4D_0F24_47C9_8CD4_A4D90B9C6D35_150547.pdf
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i second sammy view,.stocks of great businesses will see a time wise correction,how much time is tough to tell.as long as they maintain their growth momentum the grind will have to be taken in its stride.
With Eicher continuously ramping up production capacity hopefully Mr Lal is aware of the problems that came on doors of Harley in late 2007-08
It needs to produce enough bikes without saturating the market like Harley did, but also make them in sufficient quantities to keep buyers from going to the competition. It’s a delicate balancing act that Harley is still having difficulty figuring out.
Empower,
Please don’t expect a split. The company is not chasing investors or looking to make a quick buck from my understanding of the business. Which speaks highly of them frankly. If you are interested in the stock, study the pe and wait for a number that works for you. If you are looking for a lower price, you may have to wait like Buffet says.
Sanjay
Bajaj Auto AGM notes http://calculatedwagers.blogspot.tw/2015/08/notes-from-agm-bajaj-auto-limited.html
The details on the export market of Bajaj is a very good read and helps to form a perspective on the export potential for RE.
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I own Eicher stock.
I see Sid Lal getting most of the credit for the companies phenomenal performance. More articals are covering him and Prof. Bakshi has lauded his approach and focus.
The question: Is there bench strength in the company. Has he set up a mgmt team that can carry the ball forward? I ask this because the big disappointment in Infosys was that the founders did not build a team that could take over from them. Unlike companies like GE, which is know for it’s successful management grooming, Infosys failed. How about Eicher? Is it a one man show? I haven’t heard of anyone but Sid mentioned in my Eicher readings.
Thanks,
Sanjay
The Lals (both father and son) are reputed for the great culture they have built in Eicher - everyone is forced to think, and to voice their opinions/disagreements. (which I think is quite admirable in the Indian context)…
Disc. Not invested
Agreed @PP1. Without that kind of 2nd line, Lal wouldn’t risk living in London for an year. For long, Eicher had been a very professional firm and the Lals were prudent to groom decent talent and give decent amount of freedom to the professionals in the firm.
Disc - invested and views are biased
Thank you for the responses.
Good to hear. 
Sanjay.
Lal is not dreaming big.
“Small is good for us. We want to be small and focused. Our end game is 15 years from now and it is not three years from now.”
Eicher’s plan for what it calls Phase II
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Nice and detailed. Thanks.
Question:
Why the london base and not a Miami base instead since they seem to be targeting the South American continent? Is he avoiding competing with Harley on it’s home turf, since now Eicher’s capitalization is nearing the international motoring companies?
Sanjay
It’s london based because they have bought one company which is in designing ( based at london ).
So may be he is going to london and not miami
Multix is launched and now available for test ride. Appreciate if someone do some store visit and provide inputs from the ground.
Regards
RajPanda
https://www.behance.net/gallery/27326015/Multix-Personal-Utility-Vehicle-Advertising-Campaign
Multix ad campaign.
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Mutix could be very successful in Tier 2- 3 towns. Its added generator function is a novel idea that could take buyers from the TATA’s.
At 5000 multix /month what would its impact on top line? Could it be a game changer?
Just an anecdote from Dubai… recently i was talking to a scion from one of the wealthiest families in Dubai. He asked me about Royal Enfield and asked me about what I knew about the company and its bikes. Turns out he has recently bought a Continental GT and is very happy about it. He said that it is very much possible that Royal Enfield could become popular among the cash-rich young local citizens. Dubai locals have traditionally been only crazy about cars with the obvious exception of Harley. So it will be interesting to see how Eicher performs here.