Hero Honda Dips 4.8 Per Cent On Profit-booking

Mumbai, May 22: | Updated: May 23 2003, 05:30am hrs
The worlds largest motorcycle maker, Hero Honda, on Thursday plunged 4.8 per cent on profit-booking after recent sharp rise. The stock had gained over 30 per cent in the last one month.

On The Stock Exchange, Mumbai (BSE), the stock of Hero Honda lost Rs 11.20 to close at Rs 222.75, on volume of 2.17 lakh shares.

Dealers said the stock is likely to consolidate from current levels.

He said the rally in the stock was mainly due to an attractive dividend yield. For the year to March 31, 2003, the company proposed a hefty dividend of Rs 18 per share (900 per cent). In the last four weeks or so, many of the funds had accumulated the stock on the back of attractive dividend yield, he added.

The rise in the scrip was also on reports that CD-Dawn, the motorcycle launched by the company recently in the economy segment, has received good response. CD-Dawn was launched in mid-April and achieved volume of 7,500 units during the month.

However, analysts are not optimistic about the Hero Honda stock.