Eicher Motors Falls After Morgan Stanley Downgrade
Shares of the Royal Enfield dad or mum pared opening positive aspects and declined almost a p.c to Rs 20,026.15 per share.
Morgan Stanley downgraded its advice on the inventory to ‘Equal-weight’ from ‘Chubby’. Additionally, the value goal was reduce to Rs 21,331, indicating a possible upside of 5.6 p.c from the earlier shut.
Right here’s what the agency needed to say on the inventory:
- Regulation-driven worth hikes led to sharp slowdown in volumes.
- See margin headwinds; Anticipate 300 foundation factors margin contraction over FY19-21.
- Royal Enfield will face competitors from Jawa Bikes and Bajaj Triumph.
The inventory declined 28 p.c previously 12 months in contrast with a 17 p.c achieve within the S& BSE Sensex.