Shares of Eicher Motors dropped 3.3 per cent to the day’s low of Rs 3,366 on Friday after the corporate’s chief monetary officer (CFO) Kaleeswaran Arunachalam tendered his resignation, which will likely be efficient after September 2.
Eicher Motors stated the appointment of a brand new CFO in his place could be intimated in the end. In the meantime, Arunachalam will now be a part of Cromptom Greaves Shopper as CFO, from September 5.
Arunachalam’s resignation from the autombile main follows a sequence of administration exits from the corporate over the previous couple of years.
As per experiences, after Royal Enfield’s (co’s motorcycle arm) former Chief Govt Officer Vinod Dasari parted methods in August, 2021, quite a few senior officals have left the bullet motorbike maker.
Its Asia-Pacific head, Vimal Sumbly, was reportedly the newest official to have exited in February this 12 months.
Eicher Motors, nonetheless, has maintained a bullish upcycle on the bourses. The corporate’s scrip has jumped 33 per cent within the final six months on new launches and sturdy demand.
Publish this rally, world brokerage UBS sees restricted upside potential. It has lowered its ranking to ‘Impartial’ with a revised value goal of Rs 3,675. “Whereas the Hunter 350 launch ought to deal with home demand considerations within the close to time period, a sustainable restoration in Royal Enfield (RE) volumes must anticipate materials macro enchancment,” it stated.
It provides that its estimated FY24 home volumes of 790,000 items (150,000 of Hunter) are nonetheless decrease than the FY19 peak of 805,000 items, underscoring the demand fatigue dealing with the class.
Divulging from this view, HDFC Securities however, believes Royal Enfield to be a key beneficiary of the premiumisation development in India given its dominant place within the >250cc market. It targets to launch a number of new merchandise over the following 18-24 months, which would supply an improve choice to its present prospects.
“On exports, the bike maker is seeing a powerful demand pull from its key markets. Administration expects to see sustained progress within the coming years,” the brokerage stated in a current report, reiterating its ‘Add’ ranking on Eicher Motors.
Furthermore, to issue within the improved demand momentum from Hunter, the brokerage has raised its FY23-24 estimates by 3 per cent every. On account of the earnings revision and a roll ahead to June 2024 earnings, its goal value has been revised upwards to Rs 3,333 per share.
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