Highlights:
Motorcycles: Royal Enfield well-positioned: Given its leadership position, cult brand equity and minimal competition, Royal Enfield is well positioned to benefit from increasing trend of lifestyle biking. Currently, demand for Royal Enfield motorcycles far exceeds supply with average waiting period at 6-8 months. Capacity expansion (new plant to start in 1QCY13), new launches (Thunderbird 500 and Café Racer), and network expansion to drive 25%/29% volume/EBTIDA CAGR over CY12-15E.
Motorcycles: Royal Enfield well-positioned: Given its leadership position, cult brand equity and minimal competition, Royal Enfield is well positioned to benefit from increasing trend of lifestyle biking. Currently, demand for Royal Enfield motorcycles far exceeds supply with average waiting period at 6-8 months. Capacity expansion (new plant to start in 1QCY13), new launches (Thunderbird 500 and Café Racer), and network expansion to drive 25%/29% volume/EBTIDA CAGR over CY12-15E.
