The Hero MotoCorp stock rose in morning trade after country's largest two-wheeler maker reported a 13 per cent rise in June sales. At 11: 46 am, the stock rose 1.60% or 54.55 points to 3468.15 on the BSE. After opening at 3450 level, the stock rose 2.05% intra day to 3483.80 today. The stock closed at 3,450 level or 36.50 points higher in trade today.
Currently, the stock is 3.27% away from 52-week low of Rs 3353.75.
It has gained after six days of consecutive fall. It has fallen 8.43% since the beginning of this year and is down 8.18% during the last one year.
The firm clocked sales of 7,04,562 units in June this year. Its first quarter sales crossed 2.1 million units. In the year-ago month, the Delhi-based company had clocked a turnover of 6,24,185 units.
"Riding on robust sales of two-wheelers, we have created another global benchmark, clocking over 2.1 million unit sales in the June quarter of the current fiscal year," Hero said.
Hero sold 2,104,949 units in the first quarter, bettering its own previous record in the September quarter of FY18, when it had 2,022,805 units. The company said it had crossed the 7-lakh unit monthly sales thrice in the past, in April 2018 selling 7,06,365 units, March 2018 selling 7,30,473 units and in September 2017 when it had sold 7,20,739 units.
The company expects better sales going forward with the monsoon already hitting many parts of the country ahead of time, which will lead to a positive consumption pattern.
The company has also has announced an upward revision of prices for its motorcycles and scooters, with immediate effect, to partly offset the consistently rising input costs, including the prices of commodities, and currency depreciation. Prices will increase by up to Rs 500, it added.
The firm raising prices by up to Rs 500 at ex-showroom level should support margins, said Nomura. The brokerage has given a "buy" rating on the stock with a price target of Rs 4,483.