You are here: Home » Markets » News
Business Standard

Auto shares trade firm in a weak market; Hero MotoCorp hits 52-week high

Analysts at Emkay Global believe that the recent recovery volumes will manifest into a powerful cyclical rally across segments for automobile companies

Topics
Hero MotoCorp | auto demand | Buzzing stocks

SI Reporter  |  Mumbai 

hero motocorp, two-wheeler, 2-wheeler sales, auto, manufacturing, bike, production, workers, jobs

Shares of automobiles and related companies were trading higher in an otherwise weak market on Thursday on expectation of improvement in demand going forward, especially during the forthcoming festive season.

Hero MotoCorp, Ashok Leyland, Bajaj Auto, TVS Motor Company, Eicher Motors, Balkrishna Industries and Cummins India from the auto index were up in the range of 1 per cent to 4 per cent on the BSE. At 12:14 pm, the S&P BSE Auto index was up 0.5 per cent, as compared to 0.69 per cent decline in the S&P BSE Sensex.

“The months of August and September 2020 have brought plenty of signs that the volumes may be well along on its recovery from sharp cyclical downturn. We estimate that the recent recovery volumes will manifest into a powerful cyclical rally across segments,” analysts at Emkay Global Financial Services said in sector update.

The expectations of festive season demand are positive. Given that festive season is commencing post a lengthy inauspicious period, demand pick-up is expected across segments. Growth is expected to be in double-digits for tractors, while flat- to single-digits in passenger vehicles (PVs) and two-wheelers (2Ws), it said.

Shares of hit a fresh 52-week high of Rs 3,380, up 2 per cent on the BSE in intra-day trade. In the past one week, the stock has gained 11 per cent after the company reported strong 17 per cent volume growth in the month of September. In comparison, the S&P BSE Sensex was up 3.7 per cent during the period.

With the peak festival season coming up in the months of October and November, remains cautiously confident of achieving yet another benchmark in post-Covid retail sales with the help of positive consumer sentiments and continued government policy support.

To partially offset the rising input costs and commodity prices, the company has made an upward revision in the ex-showroom prices of its motorcycles and scooters by up to 2 per cent, with the exact quantum varying on the basis of the model and specific market. The revised prices are effective from October 1, 2020.

is market leader in 75-125CC motorcycles and the company’s products having good traction in rural pockets. Going forward, analysts at Angel Broking expect healthy growth on the back of a strong brand, wide distribution network and new product launches.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, October 15 2020. 12:32 IST
RECOMMENDED FOR YOU
.