 "Hero MotoCorp gains 6% as it claims 10,000 unit sales in a week")
Shares of Hero MotoCorp were up 6 per cent to Rs 2,080 on the BSE on Monday after the country's largest two-wheeler maker Hero on Sunday said it has resumed operations across 1,500 touch-points, including authorised dealerships, across the country. These outlets contribute to around 30 per cent of the Company’s total domestic retail sales.
At 11:00 am, the stock was the top gainer among the S&P BSE Sensex, which was up 1.1 per cent or 359 points at 32,002 levels.
Around 10,000 units of motorcycles and scooters have already been sold since the reopening of these customer touch-points, Hero MotoCorp said in a statement.
Hero MotoCorp also commenced vehicle dispatches from its manufacturing facilities for the current fiscal year (FY’21) on Thursday, May 7. All of Hero MotoCorp’s manufacturing facilities across the globe had halted operations since March 22 as a precautionary preventive measure against coronavirus, it added.
In April, there were no vehicles manufactured and dispatched to dealers. The company reported zero sales across domestic and overseas markets. With today’s gain, the stock of Hero MotoCorp recovered 41 per cent from its 52-week week low of Rs 1,475 touched on March 24, 2020.
Analysts believe while April-June quarter (Q1FY21) is expected to be a wash-out, demand recovery should happen around the festive season (Sep’20 onwards). Thus, analysts expect three opportunities to emerge from this adversity, possible reset of global automotive supply chain, vendor consolidation and merger & acquisitions (M&As), and shift from public to private transport.
Analysts at Centrum Broking believe that social distancing will become the new normal post Covid19 too, there would be a shift from shared mobility to personal mobility. The brokerage firm also expects earliest recovery will be by H2FY21E in the two wheelers and tractor segment.
At 11:00 am, the stock was the top gainer among the S&P BSE Sensex, which was up 1.1 per cent or 359 points at 32,002 levels.
Around 10,000 units of motorcycles and scooters have already been sold since the reopening of these customer touch-points, Hero MotoCorp said in a statement.
Hero MotoCorp also commenced vehicle dispatches from its manufacturing facilities for the current fiscal year (FY’21) on Thursday, May 7. All of Hero MotoCorp’s manufacturing facilities across the globe had halted operations since March 22 as a precautionary preventive measure against coronavirus, it added.
In April, there were no vehicles manufactured and dispatched to dealers. The company reported zero sales across domestic and overseas markets. With today’s gain, the stock of Hero MotoCorp recovered 41 per cent from its 52-week week low of Rs 1,475 touched on March 24, 2020.
Analysts believe while April-June quarter (Q1FY21) is expected to be a wash-out, demand recovery should happen around the festive season (Sep’20 onwards). Thus, analysts expect three opportunities to emerge from this adversity, possible reset of global automotive supply chain, vendor consolidation and merger & acquisitions (M&As), and shift from public to private transport.
Analysts at Centrum Broking believe that social distancing will become the new normal post Covid19 too, there would be a shift from shared mobility to personal mobility. The brokerage firm also expects earliest recovery will be by H2FY21E in the two wheelers and tractor segment.
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