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Uplifting the Adventure category: The company has an aggressive launch pipeline planned for the coming quarters.  Recently it has launch Himalayan 452 which will compete with likes of Scrambler 400, 390 Adventure, BMW 310GS and will also foray in global market. Post launch the bike has received a tremendous response from the community. Company also launched an assured buyback and re-owned program for customers.

Global footprint expansion: The company currently has 1050+ global touchpoints with 221 exclusive stores and is continuously looking to open stores in underpenetrated markets. Also, expanding presence in the Middle East and Africa by partnering with the esteemed AW Rostamani Group, which is now the official distributor in the UAE. Company has launched shotgun 650 under custom made category in the US and also expects to launch the same in India.

VECV's performance: VECV sales grew by 19% YoY to Rs.54.83bn led by healthy volume growth which was driven by high vehicle utilization, uptime focus, and rapidly expanding service and parts network. The management expects CV growth to continue to be strong in FY25 due to replacement demand (replacement of BS-III-IV vehicles), economic growth and investments in infrastructure. In YTD FY24, VECV grew its market share across categories. In the LMD (5-18 tonne) segment, market share stood at 34%, in the bus segment, market share stood at 22%. In the HD segment, market share increased to 9%.

Outlook and Valuations: Going forward, increasing accessories revenue, expanding RE's reach in the international market, expanding presence in underpenetrated markets (Tier II & III cities), and a healthy launch pipeline in across the bike category bode well for Eicher Motors to witness healthy growth over FY24-26. We like to ascribe a ADD rating on the stock with a TP of Rs. 4,268 (22X Sep-25E EPS).

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SEBI Registration no.: INZ 000160131