Moneycontrol Bureau
Most brokerages have retained their cautious to bearish view on two-wheeler major Hero Motocorp following the disappointing third quarter earnings announced post-market hours Tuesday. The company’s third quarter net profit rose 11.2 percent to Rs 583 crore, and topline declined slightly to Rs 6839 crore.
According to brokerage house Macquarie, the company’s investment in export markets and brand building impacted the bottomline. Macquarie has retained its neutral rating on Hero with a price target of Rs 2750.
Brokerage house Goldman Sachs, while retaining its sell rating, slashed the company’s earnings per share estimate for FY15-18 by 5-14 percent, and cut price target to Rs 2529 from Rs 2655.
Citi has retained its sell rating on the stock and sees volumes declining faster than rivals due to higher exposure to rural market, where consumption in general has been weak over the last few months.
UBS, which has a neutral rating on the stock, cut price target to Rs 3200 from Rs 3300, and motorcycle volume growth for FY15/16 to 6-8 percent from 10 percent due to shift in consumer preference for scooters.
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