Tough road ahead-EICHER

Eicher motor had a dream run on the stock market, thanks to its two wheeler segment. 

Some of the key driving factors were:

1. A whole generation grew dreaming to own a Royal Enfield. As soon as this lot started earning, non one came in their way to stop them to own this beast. There were multiple product launches from various two wheeler companies but this group remained loyal and went ahead with its buying.
2. The "Bahubali" gang- This forms the second lot of buyer and quite loyal to this brand since ages. Dabang look has to be supported by this machine.

Why its losing the track:

1. Next Generation wants to look "Cool" and not "Manly"- There is a slowdown in Eicher sales and one of the prime reason being-lack of interest from Generation next or it could be various "Cool" bikes which are available. Due to multiple available options and lack of any "first love" with this brand, Eicher is going to lose the craze. It will again become a niche player like it used to be a decade back.
2. Earlier generation has slowly moved to four wheelers. Hence similar demand cant continue in future..

#Eicher #Eichermotors

Update: August 1st:
https://www.moneycontrol.com/news/business/markets/eicher-motors-q1-profit-plunges-22-to-rs-452-cr-subdued-volume-drags-revenue-6-4273821.html


Disclaimer: Please note that these are personal views of the author. All investors are advised to conduct their own independent research into individual stocks or industries before making any decision. In addition, investors are advised that past stock performance is not indicative of future price action.