Eicher Motors falls 3% as Citi cuts price target after uncertainty on volume growth

The price cut was after the brokerage house reduced its consolidated earnings estimates by 2-3 percent over FY19-21.

Eicher Motors shares fell 3 percent in morning on Tuesday as global brokerage house Citi has maintained buy call on the stock, but slashed price target to Rs 24,700 from Rs 25,200 earlier.

The price cut was after the brokerage house reduced its consolidated earnings estimates by 2-3 percent over FY19-21.

Discount to historical average trading multiple reflected uncertainty on volume growth, it said, adding the positive stance on Royal Enfield business is driven by its unique positioning in Indian 2-wheeler market.

Company’s Royal Enfield sales dropped 14 percent to 62,630 units February 2019, compared to 73,077 units sold in same period last year, but exports increased 49 percent year-on-year to 2,564 units.

At 09:24 hours IST, the stock was quoting at Rs 19,583.90, down Rs 354.35, or 1.78 percent on the BSE.

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