Product portfolio, expanding markets to drive gains for Eicher Motors

In addition to volume growth, margin gains hinge on raw material/freight cost movement

The stock of Eicher Motors was up 7.5 per cent in trade on Monday on expectations of robust domestic demand, scaling up of export opportunity and higher margins. Led by strong performance of its two wheeler business (Royal Enfield), the company’s March quarter performance was in line with analyst estimates.

The near term trigger would be volume growth improvement helped by the easing of supply chain constraints. While Royal Enfield volumes were down 9 per cent y-o-y in the quarter, new launches of Classic 350cc and Scram 411cc bikes during the year could drive growth going ahead. Revenues for the