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Royal Enfield is upbeat about its future after enjoying great sales and market share for its range of motorcycles. The company intends to increase capacity by 75% to meet the increased demand and to be able to explore overseas market.
Calendar year 2014 has been a dream year for the company, says Siddhartha Lal, MD and CEO, Eicher Motors . The company has grown six-fold in last five years. Brokerages are upgrading the stock after stellar a performance last quarter. The stock has doubled this year and hit record high of Rs 12,372 on September 16, 2014.
Macquarie sees a 4x rise in earnings on the back of Royal Enfield business growth this quarter. The Royal Enfield sales were up 85 percent year-on-year to 74000 units. The company reported EBIT growth of 67 percent aided by motorcycle business.
Reports suggest Eicher aims to dominate the mid-sized motorcycle market in the US, which is currently dominated by Harley Davidson. The US is USD 7 billion motorcycle market, if Eicher cracks it, margins could be much higher.
Speaking to CNBC-TV18, Lal says the order book of the company has been growing for its motorcycle segment. Eicher Motors has over 95 percent market share for above 250cc motorcycle space.
According to management, the company has a lot of room to grow and is creating ground for mid-size motorcycle segment globally. The company is looking for a 70-75 percent capacity expansion going ahead.
Source: Eye 70-75% capacity expansion in motorcycle biz: Eicher - Moneycontrol.com
Calendar year 2014 has been a dream year for the company, says Siddhartha Lal, MD and CEO, Eicher Motors . The company has grown six-fold in last five years. Brokerages are upgrading the stock after stellar a performance last quarter. The stock has doubled this year and hit record high of Rs 12,372 on September 16, 2014.
Macquarie sees a 4x rise in earnings on the back of Royal Enfield business growth this quarter. The Royal Enfield sales were up 85 percent year-on-year to 74000 units. The company reported EBIT growth of 67 percent aided by motorcycle business.
Reports suggest Eicher aims to dominate the mid-sized motorcycle market in the US, which is currently dominated by Harley Davidson. The US is USD 7 billion motorcycle market, if Eicher cracks it, margins could be much higher.
Speaking to CNBC-TV18, Lal says the order book of the company has been growing for its motorcycle segment. Eicher Motors has over 95 percent market share for above 250cc motorcycle space.
According to management, the company has a lot of room to grow and is creating ground for mid-size motorcycle segment globally. The company is looking for a 70-75 percent capacity expansion going ahead.
Source: Eye 70-75% capacity expansion in motorcycle biz: Eicher - Moneycontrol.com
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