Hero MotoCorp share price gained over 2 percent intraday on June 23, a day after the company decided to raise prices by up to Rs 3,000 from July 1.
According to the statement released by Hero MotoCorp, the upward revision is a direct result of the increase in commodity prices. The statement further adds that the company is driving cost savings programmes aggressively in order to minimise the impact on the customer.
Also Read: Hero MotoCorp to raise prices by up to Rs 3,000 from July 1
The stock was trading at Rs 2,982.15, up Rs 75.60, or 2.60 percent. It has touched an intraday high of Rs 2,994.55 and an intraday low of Rs 2,941.
Currently, there is no indication on the exact prices, but it is expected to be across all of the Hero’s scooters and motorcycles.
The 2-wheeler maker reported healthy growth in March 2021 quarter earnings as standalone profit shot up 39.4 percent year-on-year (YoY) to Rs 865 crore, driven by strong revenue and operating performance.
Revenue from operations grew by 39.2 percent YoY to Rs 8,686 crore with 18.5 percent volume growth for the March 2021 quarter.
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ICICI Direct has a buy rating with a target of Rs 3,440 per share, an upside of 15 percent from the current level.
"For Hero Moto, we build 16.4 percent/15.1 percent sales/PAT CAGR, respectively, in FY21-23E. With relative stability in demand and margin outlook, we believe the company offers a sizeable margin of safety at CMP (7 percent CFO yield, 5 percent FCF yield, 4 percent dividend yield over FY21-23E)," it said.
Research and broking firm Motilal Oswal also has a buy rating on the stock with a target of Rs 3,500 per share, an upside of 17 percent from the current market price.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.