Hero MotoCorp share price surged nearly 4 per cent to hit a 10-month high of Rs 2,871 in intraday trade on the Bombay Stock Exchange as compared to 1.08 per cent rise in the S&P BSE Sensex. The stock breached its highest level since September 24, 2019 on the back of spurt in volume trade. The auto major's shares have rallied 94.64 per cent as compared to its 52-week low of Rs 1,475 touched on March 24, 2020.
The stock of the world's largest two-wheeler manufacturer opened lower at Rs 2,757 against the previous closing price of Rs 2,764.35 on the Bombay Stock Exchange. The stock gained 3.87 per cent to hit an intra-day high of Rs 2,871.60 on huge volume as 0.73 lakh shares changed hands over the counter as compared to two-week average volume of 0.37 lakh shares. The stock touched 52-week high of Rs 3,021.15 touched on September 23, 2019.
Paring some of the early gains, Hero MotoCorp shares ended day's trade at Rs 2,855.55, up 3.30 per cent, on the BSE. On the National Stock Exchange (NSE), Hero MotoCorp shares closed at Rs 2,858, up 3.40 per cent, after opening flat at Rs 2,764.05.
Brokerages expect the auto major to be least impacted by the COVID-19-led disruptions due to revival in the rural and semi-urban markets, which have been helped to a large extent by the various stimulus packages rolled out by the government. A combination of multiple factors, including the forecast of a normal monsoon, a bumper Rabi crop and the upcoming festive season are expected to keep the momentum going over the next few months.
During the first quarter ended June 30, 2020 (Q1FY'21), Hero MotoCorp reported total sales of 563,426 units as most of the plants remained shut in wake of coronavirus pandemic. It reported a 26.8 percent decline in domestic sales at 450,744 units during June 2020 as compared to 616,526 units in June 2019. On the sequential basis, the auto major registered a growth of four times over the month of May 2020, when it dispatched 112,682 units.
The company said it has achieved 90 per cent of its pre-coronavirus levels after reporting subdued performance in March, April and May. In February, the two-wheeler major had posted sales of 4.98 lakh units.
Recently, Hero MotoCorp Chairman Pawan Munjal, in the company's annual report, said the short-term business outlook remains uncertain due to the COVID-19 pandemic. However, the long-term story of the two-wheeler industry remains intact, strong and positive. The company expects demand to be robust this fiscal with people expected to opt for personal mobility amid coronavirus pandemic.
Despite the sluggish economic activity around the world during the year (2019-20), the company said it continued to collaborate with partners to keep growing its global footprint. In Bangladesh and Nepal, the company is deepening its financing network across markets and strengthening the momentum.