Eicher Motors Ltd (EML) had a subdued performance in the second quarter of FY25 due to a slowdown in the overall economy and weak volume growth for its Royal Enfield brand.

The company's quarterly results showed improved realizations, but the export markets remained dampened, leading to a cautious outlook.

However, the domestic demand outlook is positive in the medium to long term, supported by potential triggers such as protectionist measures in the tire industry and the "China plus" strategy.

Eicher is expected to perform better in the second half of FY25, although its stock is currently trading at a premium to fair value.

Therefore, investors may consider accumulating the stock on corrections.

Market analysts maintain an equal-weight rating on Eicher, which has a current market cap of ₹1,25,769 crore and a share price of ₹4,589.10.

Despite the challenging economic landscape, the company is effectively navigating the export market and positioning itself for future growth.