Equity L/S Analyst | Forensic Accounting | India, Yellowstone Equity

Ankit Agrawal, CFA

I possess investment research experience across asset classes and geographies, acquired at Investcorp (New York) and Howe & Rusling (Rochester). At Investcorp, an alternative asset manager, I was part of an investment team managing >$1bn in discretionary client assets. I was also a member of investment recommendation, monitoring, cross-asset strategy and macro outlook committees that met periodically for investment decisions and top-down views. At Howe & Rusling, a long-only asset manager, I helped cover US large-cap equity investments across sectors for growth and income focused portfolios as well as assisted in managing a US small-cap growth focused equity portfolio. I possess an MBA in finance and corporate accounting from University of Rochester in US, a CFA Charter, and an Engineering degree from Indian Institute of Technology Bombay in India.  

My current focus is L/S equity fundamental research across market cap and sectors with an eye on corporate governance and forensic accounting. I am currently based in India and my current coverage universe is biased towards India.

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Regulatory Disclosure: Note that Ankit Agrawal (Proprietor of Yellowstone Equity) is a SEBI registered Research Analyst (Registration No.: INH000007216). Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Research Analyst Contact Details -
Address: A-602, Titanium Business Park, Makarba, Ahmedabad - 380051 |
Email: services@yellowstoneequity.com |
Mobile: +91-7575817289

Compliance/Grievance Officer -
Name: Ankit Agrawal |
Email: services@yellowstoneequity.com |
Mobile: +91-7575817289
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Equity L/S Analyst | Forensic Accounting | India

Eicher Motor’s Cosy NRC Rewards CEO-Promoter Lavishly Year After Year as Performance Plunges

Eicher Motors (EIM IN) | Unlikely to Be #BeReborn

India Channel Insight #21 | Hero Motocorp, Royal Enfield (Eicher Motors)

Eicher Motors (EIM IN) | Royal Enfield Studio Visit - Disrupted Dreams

Eicher Motors (EIM IN) | Potential "Rewire" To Watch Out for in Q4 Earnings Call

India Autos (2Ws) | Key Takeaways from Channel Interactions

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/eicher-motors-ltd" target="_blank" data-smartkarma-citation="entities:18316:1" rel="noopener">Eicher Motors (EIM IN)</a> reported its Q3FY21 earnings this week. While Eicher is no doubt a dominant player in the premium motorcycle segment in India, we believe that the product cycle for Royal Enfield (RE) is maturing. To counter it, Eicher seems to launching new models like Meteor. It is also taking new initiatives like Make it Yours (MiY) to engage with customers and sustain the brand's aspirational value. It has also enhanced its digital footprint significantly. However, we doubt this would be enough.
RE is also expanding its distribution in the international markets rapidly. However, we do not share the same level of optimism as RE's management on the adoption of RE's motorcycles in the international markets. We remain skeptical on the scalable potential of the exports business.
<div class="content-highlight">
Overall, we think RE would be better off in accepting that the product cycle is maturing. It should focus on core models and key markets to drive growth rather than spread itself too thin and broad in its quest for growth. 
</div>
In our note below, we discuss:
<ul>
<li>Key Structural Concerns</li>
<li>Management Updates &amp; Outlook</li>
<li>Near-term Operational Risks</li>
</ul>

Eicher Motors (EIM IN) reported its Q3FY21 earnings this week. While Eicher is no doubt a dominant player in the premium motorcycle segment in India, we believe that the product cycle for Royal Enfield (RE) is maturing. To counter it, Eicher seems to launching new models like Meteor. It is also taking new initiatives like Make it Yours (MiY) to engage with customers and sustain the brand's aspirational value. It has also enhanced its digital footprint significantly. However, we doubt this would be enough.
RE is also expanding its distribution in the international markets rapidly. However, we do not share the same level of optimism as RE's management on the adoption of RE's motorcycles in the international markets. We remain skeptical on the scalable potential of the exports business.

Overall, we think RE would be better off in accepting that the product cycle is maturing. It should focus on core models and key markets to drive growth rather than spread itself too thin and broad in its quest for growth. 

In our note below, we discuss:

Key Structural Concerns
Management Updates &amp; Outlook
Near-term Operational Risks


Eicher (Royal Enfield): Spreading Itself Thin in the Face of Maturing Product Cycle