Hero Motocorp hits 52-week high on record sales in October

Moneycontrol Bureau

Shares of Hero Motocorp gained 3.5 percent intraday to touch a 52-week high of Rs 2,149.65 on the BSE after reporting record sales in October.

India's largest two-wheeler maker sold 6.25 lakh units in the month gone by, registering growth of 18.2 percent compared to a year ago month and growth of 33.5 percent compared to previous month.

It was driven by higher dispatches due to Navratri and Dussehra and higher production in October to offset production loss at Haridwar plant in September. Numbers are expected to pick up further ahead of Diwali, feel analysts.

Hero is very confident of higher sales growth in festive season. After its second quarter results, the management had said that it would report record sales in October and November.

Earlier, the company had also impressed the street on every parameter with its second quarter (July-September) net profit rising 9.2 percent year-on-year to Rs 481 crore, driven by revenues and other income.

Revenues increased 10.4 percent to Rs 5,726 crore in second quarter from Rs 5,187.4 crore in a year ago period.

Volumes improved during September quarter as against industry growth due to good rural growth.

At 13:07 hours IST, the stock was trading at Rs 2,129.05, up 2.50 percent amid high volumes.