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Eicher Motors slides about 12% in seven sessions

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Capital Market
Last Updated : Jan 08 2020 | 2:50 PM IST

Eicher Motors fell 3.28% to Rs 20121.45, extending losses for the seventh session.

Eicher Motors has fallen 11.63% in last seven consecutive trading sessions from its previous closing high of Rs 22,770.70 on 30 December 2019. The fall was triggered by weak December 2019 sales numbers.

The auto maker announced that its total commercial vehicles (CV) sales declined 19.1% to 5,042 units in December 2019 from 6,236 units in December 2018. Total CV exports tanked 50% to 500 units in December 2019 as against 1001 units in December 2018. Total domestic CV sales dropped 13.7% to 4,410 units in December 2019 compared with 5,112 units in December 2018.

Total two-wheeler sales fell 13% to 50,416 units in December 2019 as against 58,278 units in December 2018. Total two-wheeler exports declined 14% to 1,927 units in December 2019 compared with 2,252 units in December 2018.

The stock currently trades above its 100 days simple moving average placed at 19643.72 which will act as a crucial support in near term.

Eicher Motors is the listed parent of Royal Enfield, the global leader in middleweight motorcycles. In addition to motorcycles, Eicher has a joint venture with Sweden's AB Volvo - Volvo Eicher Commercial Vehicles (VECV) - which operates in India's commercial vehicle space. VECV has a complete range of trucks and buses from 5-55 tonnes, and its integrated manufacturing plant in Pithampur, Madhya Pradesh is the global hub for medium duty five- and eight-litre engines for Volvo Group.

Eicher Motors' consolidated net profit rose 4.4% to Rs 572.69 crore on 9.3% decline in net sales to Rs 2,171.54 crore in Q2 September 2019 over Q2 September 2018.

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First Published: Jan 08 2020 | 2:23 PM IST

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