May 13, 2019 / 7:53 AM / a month ago

BUZZ-Eicher Motors plunges on Q4 miss, loses over $550 mln in market value

** Eicher Motors Ltd shares plunge ~7% to their lowest since Jan 31

** At day’s low of 18,920 rupees, stock lost 39.13 bln rupees ($556.14 mln) in market capitalisation

** Maker of Royal Enfield (RE) motorcycles posted a 18.1 pct jump in qtrly consol profit but missed street estimates

** Brokerage CLSA cut FY20-21 EPS estimate by 12-14% saying it expects weak volume growth in near term due to soft demand, rising cost from upcoming BS VI emission norms

** CLSA says RE’s underperformance in premium bike segment is a concern; cuts PT to 22,500 rupees from 23,900 rupees, keeps “outperform” rating

** Jefferies analysts cut EBITDA estimates by 3-8% over FY19-21 to reflect weaker volumes and margins but higher realisation

** Jefferies cuts PT to 23,400 rupees from 23,700 rupees; keeps “buy” rating

** Volumes of RE bikes to slide in Q1 FY20 as transition to new emission norms will raise cost hurting volumes - Equiris

** Stock posts biggest intraday pct fall in over 4 months; down ~12 pct so far this year ($1 = 70.3600 Indian rupees)

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