Shares of Hero MotoCorp have returned about 21% since the beginning of this year. Being as India’s largest two-wheeler manufacturer Hero MotoCorp, the sales for the month of October dropped 4.83% to 6,31,105 units as compared to 6,63,153 units in the same period a year ago. However, the company clocked its sixth consecutive months of six-lakh plus sales in October. The research and brokerage firm HDFC Securities has maintained a ‘buy’ rating on the stock and given an upside of 14% to a target price of Rs 4,360 from current market price of Rs 3,816.
Hero MotoCorp holds a strong market share in motorcycle business which has further increased to 51.38% in the July-September quarter led by strong volume growth in CD Dawn, Achiever, Passion Plus and Glamour. “Management indicated rural demand is ramping up, while its traditional northern and eastern markets are showing signs of recovery,” HDFC said in a report.
Despite a de-growth of 2% seen in the export volumes, management expects good growth going ahead, on the back of incremental volumes from neighbouring markets such as Bangladesh and Nepal, HDFC Securities added.
Hero MotoCorp reported a marginal rise in September quarter profit, missing Reuters estimates. The profit came in at Rs 10.10 billion for the quarter ended 30 September as compared to Rs 10.04 billion in the corresponding period a year ago. The automaker sold about 2 million two-wheelers during the quarter, which is about 11% higher over the same period last year.
The benchmark Sensex index topped 33,700-mark for the first time ever on Friday supported by the upsurge in the banking and financial services stocks. Domestic markets are on a record-breaking streak since India grabbed the 100th spot in the World Bank’s “Ease of Doing Business” 2018 rankings. BSE Sensex closed 112.34 points or 0.33% higher at 33,685.56 points while NSE Nifty settled 28.7 points or 0.28% up at 10,452.5 points.