Buy Eicher Motors - September 2012 Sales Update - Edelweiss

Eicher Motors (EIM IN, BUY, TP: INR2,790)

- Total sales at VECV stood at 3,105 units (down 31.9% YoY and 19.4% MoM), below our expectation of ~4,200 units.

- It seems that the production cut has been prolonged and billing has not happened due to high inventory at dealers.

- Royel Enfield has yet to publish sales numbers. We expect them to be at ~10k units.

- We have a 'BUY' recommendation on the stock with TP of INR2,790.

Source : Equity Bulls

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