Hero MotoCorp shares were trading 4% higher ahead of its quarterly results scheduled to be released later in the day. Share price of Hero MotoCorp on Monday touched an intraday high of Rs 2439.2, rising 4.18%, as compared to the earlier closing of Rs 2,341 on BSE.
Hero MotoCorp stock has risen 4.46% in last 3 sessions of straight gains. Hero MotoCorp share price is trading higher than 5, 20, 50, 100 and 200-day moving averages.
Hero MotoCorp stock price has risen 2.78% in one week and 21.9% in one month. Market capitalisation of firm stood at Rs 47,778.66 crore as of today's session.
Kotak Institutional Equities in its report recommended add rating for the stock with a fair price of Rs 2,150 with 4% upside.
"We expect revenues to decline by 23% YoY in the quarter under review to Rs 6,059.7 crore while profit after tax (PAT) may come in at around Rs 464.4 crore - down 36.4% on a YoY basis. Ebitda (Earnings before interest, tax, depreciation, and ammortisation) is expected to decline by 38 per cent YoY to Rs 668 crore, led by negative operating leverage in 4QFY20 while Ebitda margin is expected to contract 254 basis points YoY to 11 per cent," the brokerage said in its report.
Axis Securities in its auto report said it expected fast recovery for Hero MotoCorp.The brokerage added that the in 2 and 3 wheeler segment, Hero MotoCorp reported sales de-growth of 83% (YoY) with its scooter segment declining 85% YoY. Company has opened all its plants and its retail sales and enquiries have been promising especially in rural areas, it added later.
As per Ventura brokerage, Hero Moto Corp is expected to be the major beneficiary from the unlockdown 1.0, as entry-level motorcycle sales are expected to do better than the other segments.
Nikunj Sanghi Managing Director of JS FourWheel Motor, President of Automotive Skills Development and Director of International Affairs - FADA said that Hero's May 2020 sales, that are largely for entry-level motorcycles HF Deluxe and Splendor) were 35% of normal, with a majority coming,in from wholesale billings to sub-dealers. Secondary dealerships in smaller towns are seeing comparatively better footfalls, he added.
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