Amid growing competition, Eicher may disappoint on growth expectations

A lot will depend on the company's ability to get traction both in India and abroad for its new launches

The Eicher Motors stock has shed nine per cent over the past month, and about 14 per cent since November, on worries that greater competition will eat into the company’s lucrative market. Further, when the falling order is falling and new models have not gained significant success, the company may not meet the Street’s expectations on growth in volumes. It is no surprise then that some brokerages have downgraded the stock. In fact, analysts at IIFL Institutional Equities have turned negative on the scrip. They highlight that Royal Enfield’s (RE’s) falling order book indicates weak order flows, declining benefits from