Harley-Davidson opens Chennai outlet, to offer service, sale of 16 models

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US based motorcycle manufacturer Harley-Davidson inaugurated its outlet, taking the total number of dealership in the country to 27. The Marina Harley-Davidson is the first authorised dealership for the company in Chennai. The outlet would offer sale and service besides original merchandise to customers.

Why is it important

This is expected to increase the competition in the premium market where Eicher Motors has a leadership position.Our channel checks seem to suggest that the waiting period is already on a decline for Eicher Motors booking.

Stock to be impacted

Eicher Motors (CMP :Rs.30451 , Mcap: Rs. 83000 crs) which has seen a dream run and virtual monopoly cold suddenly face the heat from increased competition. The stock is currently trading at price earning multiple of 28.3 & 22.9 times FY19 and FY20 earnings respectively.

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