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Hero MotoCorp shares rise 4% despite May sales dip

Exports increased over 67 percent during in May after company sold 18,673 units.

June 03, 2024 / 09:41 IST
Hero MotoCorp shares have risen 24 percent since the start of the year.
     
     
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    Hero MotoCorp Limited's shares surged by 4 percent to Rs 5,314 in early trading on June 3, despite the company reporting a decline in sales for the month of May compared to the previous year.

    During May, the renowned manufacturer of motorcycles and scooters witnessed a 4 percent decrease in sales, with total units sold amounting to 4,98,123. This figure marked a dip from the year-ago period when the company had sold 5,19,474 units.

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    Specifically, domestic sales for the Splendor-maker also experienced a decline, with a drop of nearly 6 percent. In May, the company sold 4,79,450 units domestically, down from just over 5 lakh units sold in the same month last year, as per official data.

    However, the company saw a notable increase in exports, which surged by over 67 percent in May. Export figures for the month stood at 18,673 units, compared to 11,165 vehicles sold during the same period in the previous fiscal year."

    The management is optimistic about increasing market share in FY25, driven by recent launches in the premium and 125 cc segments. "We anticipate accelerated growth in FY25 and are confident that the premium and 125 cc segments will gain market share," stated Hero MotoCorp's management during a post-results earnings call.

    Hero MotoCorp expects strong performance from its new premium segment bikes, including the Maverick 440, Harley Davidson X440, and Karizma. Additionally, the 125 cc segment, featuring models like the Xtreme 125R, Splendor, and Glamour, is receiving an excellent response.

    At about 9:20 am, shares were trading at Rs 5,270, up 3 percent from the last close on the NSE. Hero MotoCorp shares have risen 24 percent since the start of the year.

    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.

    Moneycontrol News
    first published: Jun 3, 2024 09:41 am

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