Why Eicher investors needn’t worry

Locally made Harley-Davidson and Triumph motorcycles are unlikely to impact Royal Enfield’s parent, which has proved naysayers wrong on many an occasion.

For Eicher Motors, the financial year gone by was nothing short of spectacular. Its revenue was up 40% over the previous year to Rs 14,442 crore, and net profit had increased a whopping 74% to Rs 2,914 crore. In short, after three straight years of a fall in sales, the maker of Royal Enfield motorcycles had achieved its best ever annual numbers. 

There was no stopping this party (or so it seemed). The first two months of 2023-24 also recorded monthly sales that were 20% higher than in the same months last fiscal. The stock market loved what the company …