Shares of Hero MotoCorp rose close to 3 percent in opening trade on September 2 as investors rejoiced at the company's better-than-expected monthly sales number for August. The two-wheeler manufacturer's total sales rose 5 percent on year to 5.12 lakh units as against 4.88 lakh units in the base period. The sales number was even better than CNBC-TV18's estimate of 4.89 lakh units.
Brokerage firm Motilal Oswal Financial Services noted that Hero Moto's sales for August were also marginally impacted by supply-side shortages, which are expected to normalise in September. The company also expects healthy growth during the upcoming festive season. With a faster recovery expected in the rural segment, growth in the 125cc segment, new launches in scooters and strong investment in power brands, the company expects to grow ahead of the industry.
Catch all the market action on our LIVE blog
As for total domestic sales, the number was up 4 percent year-on-year to 4.92 lakh units in comparison to the 4.72 lakh units sold in the same month last fiscal. The company's electric vehicle (EV) brand VIDA also continued its upward trajectory as monthly dispatches
crossed 6,000 units for the first time and its retail market share grew to over 5 percent.
Exports also grew 27 percent to 20,097 units, up from 15,770 units a year ago. Hero Moto is also witnessing a good offtake its diverse portfolio in the 125 cc segment, especially for the Xtreme 125R.
Going ahead, MOFSL estimates volumes to grow by 8 percent for Hero Moto in FY25, implying a residual growth of 7 percent or a run rate of 5.20 lakh units.
At 09.30 am, shares of Hero MotoCorp were trading at Rs 5,603.35 on the NSE. Shares of Hero MotoCorp are up by close to 50 percent in the past month.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
