Eicher Motors tanked 11.4% in the last 3 days after rival Hero MotoCorp and Harley Davidson announced the debut of the co-developed premium motorcycle X440 in India. In Thursday's trade, shares of Eicher Motors fell over 3% to Rs 3,207. Analysts stated that HD X440 would rival the likes of Royal Enfield's RE Classic 350 and Hunter 350.
HD X440 costs 13% more than the Eicher Mototrs's RE Classic 350, while it also comes with a larger 440CC engine. Following the launch of the X440 motorcycle, Dipen Mehta, Director of Elixir Equities, said, «I think that around these levels also Eicher Motors is a decent proposition. It is not going to be like the multi-bagger it has been in the past, but I expect it to outperform the index at least in the near future and in the medium term as well.» «But at the end of the day, the market share may reduce for Eicher Motors, the absolute numbers will continue to increase, and if you see all the auto companies, they have had the best production and sales figure for the month of June.
They also have a huge export opportunity and the kind of brand, distribution, accessories, sales, and even the slate of new models they have. It is not going to be easy tiding for Bajaj or Hero MotoCorp to get a significant market share,» Mehta added. Meanwhile, Viral Chheda, Senior Technical Analyst at SSJ Finance & Securities, said, «We can see some pullback to test the higher level of 3500 and can correct from there to make a new low of 3200-3000 odd levels.
Read more on economictimes.indiatimes.com