Read on Twitter
Fundamental Analysis of Royal Enfield:
1. In June,2020- Interceptor becomes the highest selling bike in U.K. in mid-premium segment.
2. Siddharth Lal moved to U.K. to focus on International ops and Vinod Dasari from Ashok Leyland takes over as CEO
1. In June,2020- Interceptor becomes the highest selling bike in U.K. in mid-premium segment.
2. Siddharth Lal moved to U.K. to focus on International ops and Vinod Dasari from Ashok Leyland takes over as CEO
3. Acc to 7th July Interview, Seeing highest sales since Diwali.
4. Seeing a V-shaped Recovery
5. However this quarter was 63% down from the last year Quarter i.e. 2019.
4. Seeing a V-shaped Recovery
5. However this quarter was 63% down from the last year Quarter i.e. 2019.
6. Over the last 10 years, added 900 stores in India.
7. Most of the Enfield Studio stores have been able to break even. Acc to Dasari, most of these studio stories are opened by their big dealers itself.
8. Seeing a Great response on 'Make to Order'
7. Most of the Enfield Studio stores have been able to break even. Acc to Dasari, most of these studio stories are opened by their big dealers itself.
8. Seeing a Great response on 'Make to Order'
Make to order is where a customer can customise the Enfield while sitting at his home and Enfield will do all the customisation for them.
Exports have been increasing over the past few months i.e. 161% growth over the May Month.
Exports have been increasing over the past few months i.e. 161% growth over the May Month.
On Outside India:
1. They have got 600 stores around the World.
2. Set up a plant in Thailand, setting it as their 2nd base.
3. Entered new countries like Korea, Italy & Belgium.
1. They have got 600 stores around the World.
2. Set up a plant in Thailand, setting it as their 2nd base.
3. Entered new countries like Korea, Italy & Belgium.
On Capex and BSIV and BSVI
Acc Dasari, all the Capex requirement is done and now it's time to reap the benefits.
Lost 700 basis point in the Operating Margin last year due to confusion of BSIV to BSVI, though they have taken two price hikes.
Acc Dasari, all the Capex requirement is done and now it's time to reap the benefits.
Lost 700 basis point in the Operating Margin last year due to confusion of BSIV to BSVI, though they have taken two price hikes.
Developed a Solution -Telemetics, whereby a customer can identify the problem in his BS IV Royal Enfield through his Mobile.
Released lower variant of Thunderbird, Classic, Bullet Electra to reduce the pain of price increase.
Released lower variant of Thunderbird, Classic, Bullet Electra to reduce the pain of price increase.
Things to worry about:
1. Covid Impact in Tamil Nadu can hurt their production plans
2. 85% of the company customers are upgraders and they might cancel or delay their decision to buy Royal Enfield.
3. Classic 350 forms 70% of the company's total RE volume.
1. Covid Impact in Tamil Nadu can hurt their production plans
2. 85% of the company customers are upgraders and they might cancel or delay their decision to buy Royal Enfield.
3. Classic 350 forms 70% of the company's total RE volume.
If you like this thread, then we did a detailed coverage of Eicher in this video.
