Royal Enfield maker Eicher Motors this week surpassed India’s market leading two-wheeler makers Hero MotoCorp and Bajaj Auto to become the country’s most valuable two-wheeler company and fourth most valuable automobiles manufacturer.
Royal Enfield maker Eicher Motors this week surpassed India’s market leading two-wheeler makers Hero MotoCorp and Bajaj Auto to become the country’s most valuable two-wheeler company and fourth most valuable automobiles manufacturer. Over Monday and Tuesday, Eicher Motors shares rose as much as 7.52% from the Friday’s close of Rs 29,388.4 and today hit an all-time high of Rs 31,600 on NSE. As per the BSE data, the market capitalisation of the diversified automaker stood at Rs 85,578.09 crore at the end of Tuesday’s trading.
Eicher Motors’ revenue falls short when compared to that of Hero MotoCorp and Bajaj Auto, and not too long back, its market cap too, was only a small fraction of both the giants. However, in just nine years, Eicher Motors’ market cap has surpassed both. Now it is behind Maruti Suzuki India which is India’s most valuable auto company with a market value of Rs 2.37 trillion, followed by Tata Motors which has a market cap of Rs 1.29 trillion and Mahindra and Mahindra whose market value is at Rs 88,620.57 crore.
On Tuesday, Eicher Motors said that July sales of Royal Enfield zoomed 21% to 64,459 units compared with 53,378 units in the year ago in the same period. Eicher Motors’ journey of last 10 years is reflected in its books as the bottom line of the company has grown at over 40% per year since then to Rs 1,667.08 crore in the financial year 2017.
The automaker has been continuously revamping its marketing strategies and campaigns for the widespread promotion of its cash cow arm, Royal Enfield. Earlier in 1990, Royal Enfield collaborated with Eicher Motors and merged with it in 1994. Royal Enfield, now the subsidiary of Eicher Motors, which makes Standard Bullet and Thunderbird motorbikes, has seen brisk sales even as the overall two-wheeler market has remained sluggish.
In the April-June quarter, the sales of Royal Enfield grew 24.7% over the last year to 188,000 units, according to industry body Society of Indian Automobile Manufacturers (Siam). Eicher Motors is scheduled to announce its June quarter earnings on 9 August 2017.