The maker of Royal Enfield bikes is struggling through rough off-roads

Shares of Eicher Motors, the maker of the iconic Royal Enfield bike, fell 1.6 percent in early deals after global brokerage Credit Suisse downgraded the company.

Eicher was trading at 20,830 rupees, down 330 rupees in the first hour of trade on the National Stock Exchange. The stock has surged 151 percent over one year on the back of a robust demand for its bikes and on expectations of a turnaround in commercial vehicle sales, another business segment for Eicher.

Credit Suisse downgraded Eicher to `Neutral' from `Outperform' as it feels that Royal Enfield's growth potential has been priced into the stock. Some models of the Royal Enfield enjoy a waiting period of more than three months. At the same time the brokerage raised its price estimate on the stock to 19,000/share from `18,500 earlier.

CS, as the brokerage is popularly known as, feels the next upmove on the stock can come only if Eicher gets traction in 2-3 large export markets.

(Image credit: Indiatimes)