Despite several positive developments, the share price of two-wheeler major Hero Motocorp has declined over 7 percent in last six sessions. At 11:30am, the scrip was quoting Rs 2,536 on the National Stock Exchange, up only 0.3 percent.
On September 30, the company informed exchanges that it will invest about Rs 490 crore in Zero Motorcycles to jointly develop electric motorcycles. It is finalising a collaboration agreement with the California-based manufacturer of premium electric motorcycles and powertrains.
Hero Motocorp has a stake of over 35 percent in electric two-wheeler company Ather Energy.
Earlier in the week, the company launched the new Xtreme 160R Stealth 2.0 edition at the price of Rs 1,29,738 (ex-showroom Delhi). “The new addition to our premium offering will surely make the festive season more joyous,” it said in an exchange filing.
That’s not all. Hero Motocorp has also announced discount benefits of up to Rs 5,000 on its two-wheelers.
None of these positive developments have cheered investors on Dalal Street. The share price continues to remain under pressure and has declined over 11 percent in the past one month.
Global research and broking firm Morgan Stanley has maintained its 'underweight' call on the stock with a target of Rs 1,937 per share. It feels that rising sales incentives are likely to offset commodity-led gains. "The company is set for an EV launch but based on prior experience, we expect slow volume ramp up. Limited margin upside and market share pressures keep us underweight," it said.