InvestorQ : What is the reason Eicher Motors has been correcting so sharply in the last few weeks?
Neelam Naik made post

What is the reason Eicher Motors has been correcting so sharply in the last few weeks?

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Anu Biswas answered.
8 months ago
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The stock has been under pressure for some time now. On 15 April, Eicher Motors slipped by nearly 4% to touch a 3-month low of Rs.2,384. There are a number of reasons why analysts are getting wary about the prospects of Eicher. There is pressure expected on volumes and price. In addition, the commodity market boom means that the sharp spike in the price of commodities may have to be partly absorbed in a tough market.

The two-wheeler space is vulnerable to supply shocks but also to fuel prices. While the two-wheeler space that Eicher operates in is more of a niche space, it is also a product where the demand is dispensable. That is what is hitting the company operations hard. Nomura has warned that disruption by electric vehicles or EVs cannot be ruled out. EVs could force a major rethink in the business models of most of the players.

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