Eicher has been excellent learning and as well equally rewarding investment for me. While I continue to like fundamental of business, i…e long way of premiumisation in Indian bike, Constant engagement of Top managment with consumer, New product launches at appropriate time; there are some headwinds which industy in general, and Eicher in partcularly facing. The increasing competition and luming uncertainity of E-Bikes (with governement action in last 2-3 years directing to its preference of Ebikes), henceforth Eicher growth would be more dependent on New Twin success. Further, higher base is also likely to catch up and new volume growth may range in 10-15% in medium term based on new product launchs success of the company.
Since allocation to Eicher was singificantly high in my personal portfolio to begin with (at peak almost 28% in March 2016, which was systematiically reduced to 23% in March 2017, to 16% in March 2018 and around 9% as on Feb 8 2019), I have sold my holding systamatically over last 4 years to bring it below double digit. I continue to like business and also developed my holding bias for Eicher. It was very difficult for me to sell Eicher shares in last couple of months and bring my allocation to 9%.
While I intend to hold Eicher for very long term, I may further change my allocation by couple of percent in next 6-12 months. Since I was regular contributor to thread, I thought it would be good to share my deal details to the forum. I have learnt a lot from members, personally from @KS16, @rajpanda and @sammy11.
I am not at all negative about Eicher, but could not find reasons to keep it with more than 20% allocations in my portfolio. The last trache reduction in Eicher has been replaced by very expensive 3M India in my personal portfolio which is around 4.5% allocation in my current portfolio.
Discl: I am not SEBI Registered investment Advisor and I am not recommeding any investment actions to investors. Investor shall do their own due diligence before making any investment. My view may be biased due to my investment in Eicher and 3M India.