Shares of Royal Enfield bike maker have fallen for the third consecutive day.
Eicher Motors is all set to launch The Royal Enfield Hunter 450 soon. Its direct competition is with X440. Its ex-showroom price will be Rs 2.29 lakh. The X440 is expected to be the smallest and cheapest Harley-Davidson bike in India after the Street 750. The stock of Eicher Motors is under pressure from this news. The company’s stock reached Rs 3886 on November 1, 2022, which is its 52-week high. It has underperformed the BSE Auto index and the benchmark Sensex in the last one year. During this period, the BSE Auto index has gained 28 per cent while the Sensex has gained 22 per cent. Shares of Eicher Motors have gained only 11% during this period.
what to do brokerage
Experts say that further outlook for this stock is not positive. Brokerage firm HDFC Securities has removed it from add and put it in reduce category and also reduced its target price to Rs 3,086 from Rs 3,715. Along with this, the brokerage firm has also reduced its earnings estimate, volume growth and margin estimate. However, some technical analysts believe that short-term traders can still buy this stock. He says that it can be bought at Rs 3,200-3,240. The target can be up to Rs 3,500 and the stop loss should be placed at Rs 3,075.
