The stock price has more than doubled from its March of Rs 1,475. Analysts believe that this move will benefit the two-wheeler major, as the company will be able to generate more revenue.
Hero MotoCorp share price jumped 4.18 per cent to Rs 3,034.50 apiece on BSE after the company entered into a licensing agreement with Harley Davidson to develop and sell premium motorcycles under the Harley-Davidson brand name in India. On October 16, Hero MotoCorp share price hit a new high of Rs 3,393.85 apiece, since then the stock has corrected nearly 12 per cent. However, the stock price has more than doubled from its March of Rs 1,475. Analysts believe that this move will benefit the two-wheeler major, as the company will be able to generate more revenue. “The company has a strong distribution network in India, which would help the company to grow fast in this premium bike segment. So, overall this development is positive for Hero Motocorp,” said Amarjeet Maurya, AVP – Mid Caps at Angel Broking Ltd.
The world’s largest maker of motorcycles and scooters in terms of unit volumes will sell and service Harley-Davidson motorcycles and sell parts and accessories and General Merchandise riding gear and apparel through a network of brand-exclusive Harley-Davidson dealers and Hero’s existing dealership network in India, company said in a press release.
New support level for Hero MotoCorp
Analysts at Reliance Securities said that Hero MotoCorp has breached the support of 3100 levels. This indicates weakness in the near-term. Stock could post pullback until 3050 levels but may find it difficult to sustain above the same. “Going ahead from the current levels, intermediate support is placed at 2850. Break of the same would strengthen the bears for further lower moves until 2700,” said Abhishek Karande, CMT – Sr. Research Analyst at Reliance Securities.
Hero MotoCorp in a press release also said that these actions are aligned with Harley-Davidson’s business overhaul, The Rewire, and the company’s announcement in September to change its business model in India. “This arrangement is mutually beneficial for both companies and riders in India, as it brings together the iconic Harley-Davidson brand with the strong distribution network and customer service of Hero MotoCorp,” it added.
Around 1.15 PM, Hero MotoCorp shares were trading 1.93 per cent higher at Rs 2,968.90 apiece, as compared to a 1.37 per cent plunge in S&P BSE Sensex.