Hero MotoCorp slips over 3%, top Nifty loser on weak December sales data

Over the past 3 months, the stock of this two-wheeler player declined over 25 percent

Shares of Hero MotoCorp declined over 3 percent to Rs 4,159 apiece on January 3 after the automaker reported weak December sales figures.

Over the past 3 months, the stock of this two-wheeler player declined over 25 percent, as compared to 4 percent drop in the benchmark Nifty 50 index.

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In December 2024, the company's sales declined by 18 percent YoY to 3.24 lakh units from 3.93 units in the same month a year ago. Domestic sales too plunged 22 percent YoY to 2.94 units from 3.77 units, while exports jumped 91 percent YoY to 30,754 units.

Meanwhile, motorcycle sales dropped 15.8 percent YoY to 2.9 lakh units, while scooter sales declined 32.8 percent YoY to 26,390 units.

Going ahead, Hero MotoCorp plans to launch premium motorcycles and scooters, including the electric, at the Bharat Mobility 2025.

In an earlier note, analysts at LKP Securities had maintained a "buy" rating on the stock as it corrected sharply from its 52-week highs observed in September 2024, making it attractive from business strength and value.

"We would monitor Hero’s roadmap in the EV product portfolio, including investments in Ather, the ramp-up of Vida, and the launch of a new affordable product range over the next few quarters; strategy in the mid-weight MC segment amidst growing competition; expansion into new international markets. Additionally, normal monsoons, government initiatives to enhance rural income, and marriage season are anticipated to drive 2W industry growth, benefiting Hero, particularly in the entry and 125cc segments. Consequently, 9 percent/10 percent/11 percent CAGR in Revenue/EBITDA/PAT over FY24-26E is estimated," the brokerage firm added.

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