Our recent meeting with the Eicher Motors (EIM) management suggests that Royal Enfield (RE) is seeing good traction in its newly-launched Thunderbird X – a fact also corroborated by our channel checks. With gun metal grey variant of Classic 350, stealth black of Classic 500 and now the Thunderbird X series, RE aspires for higher value growth as these variants are priced 5-6% higher than older variants. Spare parts and gears would be the company’s other growth drivers, given the high vehicle sales over last three years. We expect a 15% volume CAGR over FY18-FY20E and retain our ADD rating on the stock. We also roll over to a Jun’19 TP of Rs 32,153 (from a Mar’19 TP of Rs 30,803), ascribing 31x Jun’19 EPS to the standalone operations and 12x EBITDA to the VECV business.