Hero Honda spurts on festive season prospects

DALAL STREET SPIKES

Motorcycle major Hero Honda rose nearly 1 per cent to an all-time high of Rs 693.25 on the BSE. The stock has been gaining over the last few sessions on prospects that the impending festive season would boost its two-wheeler sales.

"The two-wheeler major has gained on expected boost in sales in the forthcoming festive season. The company has also scheduled launch of a slew new variants and models ahead of the season," a dealer said.

The festive season would boost demand for two-wheelers from the rural areas on low consumption and low maintenance banner. The stock rose over 14 per cent from August 8, when it closed at Rs 606.30.

Recently, the company has launched the 125-cc Super Splendor, at an ex-showroom price of Rs 42,231, a mid-price segment. The 100-125-cc segment accounts for the majority of Hero Honda's bike sales.