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Last Updated : Feb 18, 2020 10:22 AM IST | Source: Moneycontrol.com

Hero MotoCorp share price falls 2% as Morgan Stanley remains underweight

According to Morgan Stanley, the auto OEMs have high localisation rates but do get some components from China.

 
 
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Hero MotoCorp share price declined 2 percent intraday on February 18 after Morgan Stanley said it is underweight on the stock with a target price of Rs 2,143 per share.

According to Morgan Stanley, the auto OEMs have high localisation rates but do get some components from China.

Given the factory inventory levels, dealer dispatches will likely be unaffected, while other OEMs expect limited impact in February given adequate factory inventories.

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The company had reported a 14.5 percent growth in its December quarter profit at Rs 880 crore versus Rs 769.1 crore in October-December of 2018.

Revenue from operations fell 11 percent YoY to Rs 6,996.7 crore.

Earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 6 percent to Rs 1,039 crore, but margin saw 80bps expansion YoY at 14.8 percent in December ended quarter due to lower raw material cost.

At 09:43 hrs Hero Motocorp was quoting at Rs 2,241.95, down Rs 42.40, or 1.86 percent on the BSE.

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First Published on Feb 18, 2020 10:22 am
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