Eicher Motors drops 5% on disappointing RE sales

NEW DELHI: Shares of Eicher Motors took a beating in Wednesday’s trade after the company’s two-wheeler segment reported a dismal set of sales data for December.

At 9.35 am, the scrip was trading at Rs 22,005.35 on BSE, down 5.08 per cent.

Royal Enfield, the two-wheeler division of Eicher Motors reported a 13 per cent decline in total sales to 58,278 units in December compared with 66,968 units in the same month last year.


Domestic sales stood at 56,026 units last month as compared with 65,367 units in December 2017, a dip of 14 per cent.

Analysts tracking the stock said that low sales data for Royal Enfield was a big disappointment. They have cut Royal Enfield volume estimates for the current and the next financial year and have reduced EPS estimates by 3-6 per cent for FY18 and 5-9 per cent for the next financial year.