Hero MotoCorp hits over seven-month high; stock surges 56% in 3 months

Analysts at ICICI Securities believe HMCL has potential growth tailwinds in H2FY21 from rural recovery and downtrading in motorcycles

Shares of Hero MotoCorp (HMCL) rallied 5 per cent on Wednesday and hit an over seven-month high of Rs 2,544 on the BSE on Wednesday on expectation of demand recovery post the lifting of the lockdown.

The stock of the two-wheeler company was trading at its highest level since November 18, 2019. In the past three months, the stock has outperformed the market by surging 56 per cent, as compared to 34 per cent rise in the S&P BSE Sensex.

The demand recovery would be led by rural markets (superior cash flows via farm, MNREGA activities). Hence, the