Hero MotoCorp up 3%, at record high on positive outlook; zooms 95% in 1 yr: Hero MotoCorp share price
Source: Business Standard
The stock of the company gained on the back of a positive outlook, as the company has seen favourable trends across its domestic, electric vehicle (EV) and global businesses, in the last quarter.
Going forward, HMCL anticipates increased momentum in the October to December 2024 quarter due to positive customer sentiment, a favourable monsoon and the upcoming festive season. Additionally, the company is expected to launch products in internal combustion engine (ICE) as well as EV categories.
In the past one year, it has zoomed 95 per cent, compared to the 23 per cent surge in the benchmark index.
HMCL is India’s leading two-wheelers manufacturer, with a nearly 32 per cent share of the domestic motorcycle market in volume terms. The company has eight manufacturing facilities, including six in India and one each in Colombia and Bangladesh.
That apart, with the company receiving a positive response to Xtreme 125cc, Hero has increased the manufacturing capacity of the model to 40,000 units every month, from 25,000 units per month, to fulfill demand and increase its market share, brokerage firm Geojit Financial Services said in its June quarter result update.
HMCL is further expected to introduce more motorcycles in FY25, focusing on growing its premium portfolio, as well as new launches in both ICE and EV scooters. HMCL is actively engaged in the development of scooters, with a focus on Destini, which is expected to be unveiled soon, it added.
In EVs, HMCL plans to revamp its portfolio with the latest technology in the coming months, which will be eligible for the production-linked incentive (PLI) scheme benefits, said analysts at InCred Equities.
Two-wheelers are a better tactical play for festive demand revival. With rural market demand improving, the brokerage firm feels the high-teen growth for the domestic 2W segment and HMCL is possible, aided by a better rural mix and new 125cc bike launch.
Meanwhile, HMCL, in its FY24 annual report, said the Indian 2W industry has continued its progress on the U-shaped recovery and is inching closer to the pre-pandemic level with back-to-back double-digit growth. The industry forecast has stayed upbeat in terms of both short- and long-term outlooks.
Hero MotoCorp, with its extensive portfolio and deeply-penetrated networks in rural India, is well-positioned to capitalise on this growing demand, the company said.
With only around 49.7 per cent of Indian households currently owning a two-wheeler, the sector presents a significant growth opportunity, HMCL said.
First Published: Sep 17 2024 | 12:41 PM IST
