Eicher’s premium valuation ebbs as Royal Enfield rides downhill2 min read 10 Aug 2018, 08:00 AM IST
Scorching growth rates have created a high base for Royal Enfield, but investors were peeved by the mere 7% increase in sales during July
The Eicher Motors Ltd’s stock seems to be tired after riding in top gear for many quarters. Even the 25.3% year-on-year growth in its June quarter consolidated net profit to ₹ 576.2 crore failed to enthuse investors, given that it came a tad below consensus earnings estimates. Meanwhile, consolidated results that mirror the performance of the company’s premium motorcycle brand Royal Enfield, are showing that growth rates are slowing down after scaling dizzy heights.
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