Market capitalisation of Eicher Motors has just surpassed that of the two largest Indian motorcycle manufacturers.
In May of 2008 the market capitalisation of Eicher Motors – the owners of Royal Enfield – was just 12% of the worth of Bajaj Auto and a mere 6% of Hero Motorcorp. Now, a decade later the company’s capitalisation has overtaken that of both of its once, giant competitors.
Royal Enfield as a company has grown by 50% year-on-year for the past five years and on Tuesday, Eicher reported that the July sales of the marque had rocketed by 21% to 64,459 units compared with 53,378 a year ago.
According to the Indian Economic Times, over the past ten years, the bottom-line profits of the company have grown by over 40% a year and shares in Eicher have achieved prices over 7000% since May 2008.
With the US and European motorcycling markets steadily declining over recent years, the focus on Indian and South East Asian performance is increasing for many of the major manufacturers.
Source: Economic Times