Trend

Vrooming Off

The promoters at Eicher Motors are taking money off the table

The promoters of Eicher Motors have been selling their shares in the market. Anita Lal, mother of CEO and MD Siddhartha Lal, recently sold 5.4 lakh shares for a consideration of ₹1,031 crore. She currently holds 9.13% stake in the company. All put together, the promoters have sold 11.4 lakh shares worth ₹2,100 crore in recent transactions. Following the sale, the promoters hold 50.67% stake in the company. While the stock is currently trading 18% below its all-time high, the stock has regained some lost ground in recent days, offering an opportunity to sell at a better valuation.

While the the BSE benchmark Sensex has slipped 3% in 2016, the stock of Eicher Motors has gained 8.5% during the same period. The company continues to do well both in terms of growth and profitability in the 2-wheeler segment. Royal Enfield’s domestic sales grew 17.8% QoQ and 61% YoY in March quarter, posting a record high sales of approximately 148,186 bikes. In FY16, bike’s sales were up 53.9% over last year. Eicher Motors’ market share in the motorcycle segment has increased to 4.6% in FY16 from 3.02%. The company also saw a record margin of 29.8% from its Royal Enfield business in the quarter gone by.