Declining volume trend, muted outlook to keep Eicher stock under pressure

Higher competition and more price hikes amid muted demand are near term headwinds

The declining volume trend of Royal Enfield’s two-wheeler business for the fifth month in a row, muted outlook in the near term, and higher competition will keep Eicher Motors stock under pressure.

Volumes, down between 6 per cent and 14 per cent between November-February, fell a steep 20 per cent in March. While most brokerages had expected volumes to be in the 68,000-70,000 range, the company posted sales of 60,000 units.

The declining volume trend is unlikely to see immediate reversal, given the muted demand environment and a high base in the year-ago quarter. Analysts believe that a weak broader