Hero Motocorp Ltd jumps 3% on the back of robust growth in sales

Shares of Hero Motocorp Ltd rallied 3 percent in early trade today as the company reported robust growth in motorcycle and scooter sales. At 9:45 am the Hero Motocorp Ltd stock was trading 2.97 percent higher at Rs 2885.

Hero MotoCorp, the world’s largest manufacturer of motorcycles and scooters, sold 519,47 units in May 2023. This translates into a growth of 7 percent over the corresponding month of May 2022, when the company sold 486,704 units.

The company expects the momentum to continue in the coming months, driven by an uptick in customer sentiments, a forecast of a normal monsoon and a host of new launches in the premium segment.

Recent developments in the company

During the month of May 2023, Hero MotoCorp introduced the OBD-II & E20 compliant XPulse 200 4V. This, according to the company filing, is “in line with the commitment to bring cleaner and technologically advanced mobility solutions.”

Global Business Expansion 

HeroMoto Corp also discussed plans for global business expansion in the filing stating that “In line with its plan for global business expansion, the company announced Motosport SA as its partner in Costa Rica – a key market in Central America. As the exclusive distributor for the sale and service of Hero MotoCorp, Motosport SA will play a key role in the rapid
expansion of Hero’s network in Costa Rica.”

ICICI Securities View

In the 2-wheeler space, the company’s volume prints were in line with our expectation of tracking healthy retails, says the agency. It also added that Hero MotoCorp is surprising positively with double-digit growth and reaching new highs in the recent past.

Stock Performance

Hero Motocorp Ltd stock has considerably underperformed the benchmark Nifty50 index over the past 5 years. The Hero Motocorp Ltd stock has lost 21.36 percent of its value over the last 5 years. Whereas, the benchmark Nifty50 index has given a return of 71.96 percent over the same period.

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