Moneycontrol Bureau
Shares of Hero Motocorp declined nearly 3 percent after showing dismal sales performance in May, impacted by rural slowdown.
The world's largest two-wheeler manufacturer said it sold 5.7 lakh units in May, down 5 percent compared to 6 lakh units sold in the corresponding period last year. However, the sales on month-on-month basis increased by 7 percent.
JP Morgan is underweight on Hero Motocorp, given the ongoing slowdown in the industry. According to its report, The original equipment manufacturer will launch new scooters over the year to drive sales growth.
The brokerage believes growth rates over the year will be driven by the progress of the South West monsoons. It prefers Bajaj Auto in the two-wheeler segment, given its broad-based product mix across the domestic and export segments.
At 10:34 hours IST, the scrip of Hero Motocorp was quoting at Rs 2,646, down Rs 63.70, or 2.35 percent on the BSE.
Posted by Sunil Shankar Matkar
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