Eicher Motor : Face Value being Reduced - Good or Bad

Eicher Motors is in the process of taking permission to reduce the face value and we will analyse whether it is good or bad for the stock.

Retail traders generally have a psychological fear from the high priced stocks and it is reduced by 1/10 cost will lead to higher retail participation and more interest which means that in the short term the price will appreciate but over the long term, it will help in the correct discovery of the share price due to higher volume which is limited presently.

This type of stock split does not have any bearing on the performance of the company and we strongly recommend the same so that retail traders fear psychosis of a stock being too high priced is taken care off.

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