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Hero MotoCorp share rebounds from 52-week low, up nearly 5% on heavy volume

Bouncing back from early losses, Hero MotoCorp share price gained as much as 4.85 per cent to hit an intra-day high of Rs 2,369 apiece on the BSE

twitter-logo BusinessToday.In   New Delhi     Last Updated: July 31, 2019  | 14:49 IST
Hero MotoCorp share rebounds from 52-week low, up nearly 5% on heavy volume
Hero MotoCorp shares opened flat and soon slipped as much as 1.37 per cent to touch its 52-week low of Rs 2,228.25 apiece on the BSE

Shares of Hero MotoCorp rallied nearly 5 per cent in intra-day trade, rebounding from its 52-week low hit in early morning trade on the Bombay Stock Exchange (BSE), after a heavy volume trade on the counter on Wednesday.

Hero MotoCorp on Tuesday reported 38.28 per cent year-on-year growth in its net profit at Rs 1,257 crore for the first quarter ended June 30, 2019, led by a one-off exceptional gain of Rs 737.50 crore from the reversal of a national calamity contingent duty that the company paid for its Haridwar plant. Revenue from operations, however, declined by 8.85 per cent to Rs 8,030 crore in Q1FY20 versus Rs 8,810 crore in Q1FY19.

Today, the stock opened flat and soon slipped as much as 1.37 per cent to touch its 52-week low of Rs 2,228.25 apiece on the BSE. On Tuesday, Hero MotoCorp shares had fell 6 per cent to close at 2259.35 ahead of its first quarter earnings numbers which were announced after market-hour.

Bouncing back from early losses, Hero MotoCorp share price gained as much as 4.85 per cent to hit an intra-day high of Rs 2,369 apiece on the BSE. By the time of reporting, the scrip was quoting at Rs 2,350.80, up 4.05 per cent.

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The stock saw a surge in volume trade as 0.98 lakh shares changed hands over the counter as compared to their 2-week average trade volume of 0.29 lakh shares.

On the National Stock Exchange, Hero MotoCorp share was trading at Rs 2,350.45 apiece, up 4.06 per cent as compared to previous closing price of Rs 2,258.80. The stock hit an intra-day high and low of Rs 2,369.90 and Rs 2,225.60, respectively.

Brokerage firm JM Financial has maintained a 'BUY' rating with target price of Rs 2,850, citing higher EBITDA margin of 14.4 per cent on quarterly basis, on the back of lower logistics and advertising expense.

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The brokerage firm has said that sales during 2QFY20 are likely to remain subdued due to current weakness in the rural segment and monsoon uncertainty. However, slight recovery is expected during 2HFY20 led by festive sales and BS6 pre-buy, it said.  

Limited success of new model launches and higher than anticipated slowdown in sales post BS6 transition are key risks to our call, JM Financial said in its report.

Edited by Chitranjan Kumar

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