Hero MotoCorp surges 9% in 2 days; drives past TVS Motor in mcap ranking

At 12:58 PM; Hero MotoCorp's m-cap stood at Rs 63,076 crore as compared to TVS Motors's m-cap of Rs 62,000 crore, the BSE data shows

Shares of Hero MotoCorp gained 4 per cent to hit an over two-year high of Rs 3,153.80 on the BSE in Wednesday’s intra-day trade. In the past two trading days, the stock of the motorcycle and scooter maker has rallied 9 per cent following the unveiling of a new bike with Harley Davidson. The stock was trading at its highest level since March 2021.

The rally seen in the past two days has led to the company’s market capitalisation (m-cap) surpassing that of its peer TVS Motor Company. At 12:58 PM; Hero MotoCorp’s m-cap stood at Rs 63,076 crore as compared to TVS Motors’s m-cap of Rs 62,000 crore, the BSE data showed.

On Monday, July 3, Hero MotoCorp, and American motorcycle maker Harley-Davidson launched their co-developed premium motorcycle – the Harley-Davidson X440 in India. The Harley-Davidson X440 became the first premium motorcycle to be introduced under the licensing agreement between the two brands.

The Harley-Davidson X440 marks Hero MotoCorp and Harley-Davidson’s foray into the 440cc segment for the first time in India. Co-developed by Hero MotoCorp and Harley-Davidson at the Hero CIT, the bike will be manufactured at the company’s garden factory at Neemrana in Rajasthan.

Hero MotoCorp noted that favorable macro-economic factors such as government led capex push, strong rabi crops, robust GST collection, good water reservoirs levels etc should not only help consumer sentiment but also employment and thereby benefit overall 2W industry.

Accordingly, the company plans to capitalize on this opportunity by launching highest number of models in FY24 using financing to increase affordability and premiumise portfolio and expanding international volumes.

“Hero MotoCorp aims at robust 2W growth and is looking at new launches, premiumisation and financing as forerunners of this growth. The company also laid out a “changing gears” strategy to focus on core business segment growth; win in premium segment and build leadership in EV segment. The management indicated that it wanted to adopt frugal engineering to reduce fixed costs, achieve step change in EV costs through localization and improve model mix,” said analysts at Prabhudas Lilladher in a note.