Eicher Motors - August 2012 Sales Update - Edelweiss

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

- Total sales at VECV stood at 3,909 units (up 7.3% YoY and 8.5% MoM), in line with our expectation.

- Truck sales in the LCV/MCV segment grew a meager 0.7% YoY. Though bus sales posted significant growth of 53.6% YoY.

- Growth in bus segment is in line with company guidance where it had strong order book.

- Royel Enfield has yet to publish sales numbers. We expect it 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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