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Hero MotoCorp gains 2% in subdued market on strong November sales

Hero MotoCorp believes that the growth in personal mobility post Covid-19 restrictions will further strengthen the demand for two-wheelers

Hero MotoCorp | Buzzing stocks | Markets

SI Reporter  |  Mumbai 

Hero revs up for an uphill climb amid tougher norms, rising input costs

Shares of were up 2 per cent at Rs 3,175 on the BSE on Wednesday after the company sold 591,091 units of motorcycles and scooters in November 2020. The stock hit a 52-week high of Rs 3,394 on October 16, 2020.

Continuing to ride over the challenging market conditions caused by Covid-19, the world’s largest two-wheeler manufacturer, reported a robust double-digit growth of 14.4 per cent over the corresponding month of the previous year (November 2019), when the company had sold 516,775 units.

The management said the strong growth in sales has seen the company further strengthening its market leadership across motorcycle and scooter category, signaling the strong faith that Indian buyers continue to show for the most trusted brands. The company has been continuously ramping up supply and production across its manufacturing units to cater to the increased demand.

believes that the growth in personal mobility post Covid-19 restrictions will further strengthen the demand for two-wheelers. The company intends to further strengthen its product portfolio, as well as consumer offerings to ride this wave further.

However, in the past three months, the stock has underperformed the market by gaining 7 per cent, as compared to 14 per cent rise in the S&P BSE Sensex.

Hero is best positioned to benefit from all of these trends as the company has a strong product portfolio in entry and executive segments with more than 60 per cent shares, deep rural/semi-rural network reach (rural contributes to 50 per cent volume). The recent Tie up with Harley Davidson(HD) will also help to accelerate and enhance premium segment strategy in longer run, the company to develop a range of products for Harley(HD), analysts at Dolat Capital said post the company's September quarter result update.

The brokerage firm expects the trend of relative strength in the rural economy, shift from shared to personal mobility and down-trading; to be prominent in the near to medium term.

At 10:46 am, the stock was trading 1 per cent higher at Rs 3,149 on the BSE, against 0.32 per cent decline in the S&P BSE Sensex. A combined 941,000 equity shares had changed hands on the counter on the NSE and BSE.

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First Published: Wed, December 02 2020. 10:50 IST