Eicher Motors

(Empower the Looser) #324

Eicher makes its way to NSE. To be listed in Nifty Fifty from Apr 1

(JKS) #325

Another one aspiring to enter India and this time, the name will also be similar sounding - Carberry Enfields

(Raj Panda) #326

This is actually great news for Eicher. Eicher has a strong history of custom builds usually done by third party companies. If you follow there twitter handle, you can see RE themselves promoting the news/images of custom builds. It add’s to folklore of Royal Enfield brand.

Since RE is getting quite popular in India, it’s very good news that this custom builder is moving there base here.
Thanks for sharing.

(JKS) #327

Things keep rolling in RE

(Dhiraj Dave) #328

Even CV Sales are showing 57.3% Growth.
Total Sales 5032 in Feb 2016 as against 3,200 units in Feb 2015
Domestic < 12 Tones: 2237 in Feb 16 as against 1609 in Feb 15 (39% growth)
Domestic> 12 tonnes: 1023 in FEb 16 as against 602 in Feb 15 (70% growth)
Domestic Bus: 1004 in Feb 16 as against 563 in Feb 15 (78% growth)
Eicher Bus+Truck Export: 672 in Feb 16 as against 326 in Feb 15 (106% Growth)
Volvo HD Truck domestic: 96 in Feb 16 as against 100 in Feb 15 (4% DeGrowth)

(JKS) #329

Both Jan and Feb have produced rock solid sales figures and I expect March to be similar, Given the benign raw material prices, I expect bottom line to be fine and that means that we will have a good Quarterly results. Critics might argue that this is already in the price and this is more about what is ahead; true to some extent. I am also wondering whether anyone has been able to dig some detail about Multix sales figures. I have not seen any on the road in my city but this is supposedly more semi urban/rural targets but are the number of dealerships growing?

(Dhiraj Dave) #330

Find enclosed transcript for December 2015 quarter.

Relevant Extract
"We have to date or till December 2015 we have sold 650 units of these vehicles the markets have received a tremendous amount of interest from its target customers and we have a strong funnel of potential customers, we are increasingly being available in more markets so it’s 33 locations now across seven states and by the end of 2016 we will also be available in some BS4 market"

(Raj Panda) #331

Some excerpts

  • A popular motorbike-maker shows that winning is not always about being best
  • Indeed, it is said that owning one of the bikes can improve a young Indian man’s marriage prospects. They tend to be driven by sensible types, in contrast with those who get their kicks by showing off on flashy sports bikes, such as the KTM Duke 390. Owners of Enfields lavish care and attention on them, diligently polishing each spoke on their wheels. Prospective mothers-in-law find this reassuring.
  • In Delhi, enthusiasts from across the world flock to rent Enfields for rides through the Himalayas. Other bikes may be speedier on the highways and sip less fuel, but only an Enfield can survive such rugged terrain, “not your Harley-Davidsons,” sniffs one fan.
  • When their bike finally arrives, buyers sometimes hand out sweets in their workplace, as if celebrating the arrival of their first-born. K. Krishnamani, a forty-something manager at a logistics firm in Mumbai, now on his second Enfield, describes how riding his bike makes him feel as royal as the maker’s name. “On the road, anybody will stop and give way to you. That is the liberty you have when you ride Enfield.”

(JKS) #332

Continuing with the general trend of raining dividends…1000% dividend from Eicher, after a 35 min board meeting !!!

(JKS) #333

BS IV norms and Delhi at it. Himalayan not to be sold in Delhi

(aashish2137) #334

Also the pricing has not gone down well with the target market who think 1.50 lacs is premium pricing for a tourer of Himalayan’s capabilities. KTM Duke will offer stiff competition in this range.

(Dhiraj Dave) #335

Interesting reading, particularly on page 13
"From 2011 to 2014 the company invested Rs 683 crores as capital expenditure in the
Royal Enfield business. This in turn produced an incremental operating profit of Rs 1,037
crores. In other words, every rupee invested in the RE business generated Rs 1.5 in
operating profits."

(JKS) #336

what is the reason for this sudden drop by about 3k in price? This is inspite of the Himalayan launch…I know that dividend would have weighed in the mind of buyers and sellers but still 3k?

(Dhiraj Dave) #337

I believe there is CLSA report about valuation target revised downward. Further, some intereivew on CNBC of Siddharth Lal, he said that growth rate would slow down eventually for RE which market took negatively.

Personally, still find it good opportunity to hold on.
Discl: Have added marginal quantity in last 3 months

(V) #338

Nice report on Heavy Duty vehicles.
ICCT_India-HDV-market_20150809.pdf (791.8 KB)

(aashish2137) #339
  1. Pricing of the Himalayan hasn’t gone down well with the target market.
  2. There are issues concerning BS III status of the vehicle while cities are moving towards adopting BS IV.
  3. Market expecting Himalayan to be another RE runaway success seems disappointed.

(JKS) #340

No april fool business this is !! 45k has now started coming in

(Dhiraj Dave) #341

@KS16; @rajpanda; @sammy11

Please note exports figures of Royal Enfield.

First time, for two continuous months, exports being higher than 1,000 units. Average monthly exports in Calender year 2015 was 691. It seem to relocating of Siddharth Lal and all other efforts of the company are slowly getting recognized.

(JKS) #342

Impressive growth numbers in VE too in March’16!!

(Dhiraj Dave) #343

@rajpanda @sammy11 @KS16

March 31, 2016 Eicher Motor holding shown jump in Cartica Holding from 1,06,504 (As on December 31 2015) to 9,86,002 as on March 31 2016. While Cartica was optimistic on the company at price of 16-17K, almost tenfold increase in its stake give confidence Cartica has in Eicher business and management. I would take it as moderately positive. Let me have view of other members as well.

March 31 2016 Public Holding
December 31 2015 Public holding