Eicher’s consolidated normalised EPS grew 8% qoq and 89% yoy to Rs21.1, an 11% miss to our estimate, but 5% beat on Bloomberg consensus’. Considering the COVID-19 second wave’s severe impact on supply chain, we expect RE to struggle to meet bike demand. We cut FY22-23F EPS by 6-8%. With forward P/E valuation near +1SD above mean, we downgrade to Hold rating with lower SOP-based TP of Rs2,801.
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