Graphic: Naveen Kumar Saini/MintAfter scaling a 52-week high of Rs33,483 apiece in September 2017, shares of Eicher Motors Ltd have lost steam and underperformed the benchmark indices. In the last few months, sales growth of the premium motorcycle unit Royal Enfield, which accounts for nearly all its profits, has cooled off. From a scorching 25-30% year-on-year growth, Royal Enfield’s monthly sales growth is settling down at around 17-20%. True, it cannot be disputed that the growing aspiration levels will see the market for premium motorcycles expand. This may weigh on Eicher Motors’ operating margin, which at its current level of 31%, is among the highest in the listed auto original equipment manufacturers in the country.

Source: Mint January 30, 2018 02:26 UTC