Eicher better placed than peers in two-wheeler sector, stock gains

Presence in niche segment to keep earnings growth strong for Royal Enfield business

The stock of Eicher Motors, the parent company of Royal Enfield, have been an exception among major two-wheeler stocks, gaining 5 per cent, when its peers have shed 8-12 per cent over the last month. While intense competition and new launches across categories have pegged back sentiments, brokerages believe that Eicher would be able to better withstand the competitive intensity plaguing the sector.

Ashish Nigam and Ronak Sarda of Axis Capital believe that Eicher is immune to the current scenario in the sector.   

"Current pricing woes in Indian two-wheeler space makes one appreciate Royal Enfield's strong pricing power even more. Competition