Global brokerage house Citi has maintained buy call on Hero MotoCorp, the country's largest two-wheeler maker, after November sales data announced over the weekend.
The research house expects the stock to rally 23 percent to Rs 3,750 over a period of one year.
Hero has maintained its FY19 guidance at high single-digits to low double-digits. Implied growth of 14 percent for December–March is achievable, Citi said.
The company reported a marginal increase in its sales to 6,10,252 units in November 2018 against 6,05,270 units sold in November 2017.
"The industry witnessed conservative sales off-take during the previous couple of months owing to issues like increase in insurance costs before the festive season and overall low key market sentiment. However, sales picked up in the last few days of the festive season," the company said.
During the month, the company commenced nationwide retail sales of its new 125cc scooter, Destini 125, first and only scooter to feature an idle start-stop system.
At 12:08 hours IST, the stock was quoting at Rs 3,065, up Rs 21.20, or 0.70 percent on the BSE.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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