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Numbers below estimate; RE rises 17% YoY to 62.15k units

Volumes for VECV rise 158% YoY to 5,525 units (est. 6,223 units)

Royal Enfield’s (RE) dispatches grew 17% YoY to 62.15k units (est. 70.35k units).

We estimate RE volumes to grow 33% YoY in FY23, implying a residual growth of 35% YoY, or a run-rate of 67.2k units. There is a downside risk to our estimates.

VECV’s wholesale numbers were below our estimate. Volumes grew 158% YoY to 5,525 units (est. 6,223 units).

For VECV, we estimate 21% growth in volumes for FY23, implying a monthly runrate of 5.8k units.

The stock trades at 27.6x/15.9x FY23E/FY24E consolidated EPS. We maintain our Buy rating

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