Hero MotoCorp gains market share; higher sales in weaker segments is key

The gains for India's largest two-wheeler makers are largely expected to come from the rural market due to a shift to personal mobility and higher sales of entry-level bikes

The Hero MotoCorp (HMCL) stock gained 3 per cent on expectations of strong volume performance in September. The company is expected to outperform its peers and post 10 per cent growth in volumes to 675,000 this month. 

The gains for India’s largest two-wheeler maker are largely expected to come from the rural market, a shift to personal mobility, and higher sales of entry-level bikes. The rural market accounts for half the company’s volumes. 

Analysts at Axis Securities cite healthy farm income — because of a normal monsoon, record procurement of foodgrain at the end of the rabi season and robust government spend