Eicher Motors may see a smooth ride on easing competition concern

Eicher has sharply underperformed the Nifty50 index over the past one year with a return of -1.2 per cent while the benchmark is up 15.6 per cent during this period

The stock of Eicher Motors was the biggest Nifty50 gainer on Tuesday, up nearly 2.6 per cent to Rs 3,472 per share, on positive brokerage recommendations. 

The automotive company’s stock has underperformed sharply vis à vis the benchmark Nifty50 index over the past one year, with a return of -1.2 per cent, while the benchmark is up 15.6 per cent during the same period. Even though the stock has been lagging the market on worries that heightened competition will eat into its dominant position, some brokerages believe that issues on that front have eased. 

Nitij Mangal and Sagar Sahu of