This report is an updated version of the report published on 24 October 2025, at 12:48 PM AEDT

MotorCycle Holdings Limited (ASX: MTO) 

MotorCycle Holdings Limited (ASX: MTO) operates across Australia and New Zealand, engaging in the retail and wholesale of motorcycles, parts, and accessories. The company’s business is structured into two key segments — Motorcycle Retailing, which covers the sale of new and used motorcycles, parts, accessories, and related services, and Motorcycle and Accessories Wholesaling, which focuses on importing and distributing products to external wholesale customers and its own retail network.

Recommendation Rationale – SELL at AUD 3.920

• Rising Expenditure: Total operating expenses rose by 5% in FY25 compared to FY24, primarily driven by higher employee benefits and occupancy-related costs, including rates, taxes, and electricity. Rising expenses are anticipated to place downward pressure on margins going forward.
• Technical Standpoint: MTO stock has surpassed its R2 level recommended on 16 Oct 2025. The approx. 14-day RSI is now around 72.18. This upward move raises the likelihood of a near-term pullback as profit-taking sets in, increasing the probable risk of short-term consolidation.

• Overvalued Multiples: On a forward 12-month basis – key trading multiple (Price/Cash Flow) is higher than Median of the Consumer Cyclicals Sector.
• Market Risk: Key risks for MTO include exposure to economic cycles affecting discretionary spending, supply chain disruptions, fluctuating motorcycle demand, competitive pressures in retail and wholesale segments, regulatory changes in vehicle standards, and potential margin impacts from currency or inventory cost fluctuations.

 Daily Price Chart

Valuation Methodology: Price/Earnings Multiple Approach (FY June'26E) (Illustrative)

Considering the rise in top and bottom line during FY25, diversified business model across retail, wholesale, and digital channels, cost management efficiency, etc., the stock might trade at a slight premium to its peers. For valuation, few peers like Super Retail Group Ltd (ASX: SUL), Premier Investments Ltd (ASX: PMV), Adairs Ltd (ASX: ADH), and others have been considered.

Considering that the stock has surpassed its R2 level, macroeconomic uncertainty, share price movement, current trading level, and risks associated, the share price can face consolidation at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of AUD 3.920, at 12:25 PM AEDT, as of 24 October 2025.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 24 October 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided have been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 5: Dividend Yield may vary as per the stock price movement.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.