New Delhi, Sept. 24 -- Shares of two-wheeler companies are in the fast lane, suggesting a rosy outlook. This is perplexing given that the demand conditions are painting quite the opposite picture. For one, rural demand is subdued with weak rainfall adding to the woes. Further, price increases by two-wheeler companies are suppressing demand.

Despite this, in the past six months, shares of Eicher Motors Ltd, Bajaj Auto Ltd, Hero MotoCorp Ltd and TVS Motor Co. Ltd are up around 16%, 28%, 29% and 42%, respectively. Eicher is the listed parent of Royal Enfield. Yes, there are company-specific reasons for the uptick. For instance, TVS's margin delivery has been strong and steady at around 10% in the past few quarters. Plus, its electric vehicl...