Hero MotoCorp shares fall nearly 4% on weak February sales

Shares of two-wheeler maker Hero MotoCorp fell over 3% in early trade today after the firm reported a 29 per cent fall in February sales. Total wholesales units rose to 3,58,254 in February against 5,05,467 units in February 2021. Hero MotoCorp shares touched an intraday low of Rs 2,443.8, falling 3.64% on BSE. Hero MotoCorp share is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The stock has gained 1.15% since the beginning of this year and fallen 28.35% in one year.

Total 0.14 lakh shares of the firm changed hands amounting to a turnover of Rs 3.40 crore on BSE. Market cap of the firm fell to Rs 49,673 crore on BSE.

Also read: Hero MotoCorp expects 2-wheeler industry to make strong recovery in FY23

The share hit a 52-week high of Rs 3,514 on March 3 on 3,514 and a 52-week low of Rs 2,310 on December 20, 2021.

Domestic sales slipped 31.57 per cent at 3,31,462 units last month compared to 4,84,433 units in February 2021.

Motorcycle sales last month stood at 3,38,454 units compared to 4,63,723 units in same month last year. Scooter sales also fell to 19,800 units against 41,744 units in the year-ago month.

However, exports rose to 26,792 units from 21,034 units in February 2021.

The two wheeler firm expects the various announcements made in the Union Budget this year to trigger a cycle not only of employment and income but also capex in the private sector.

Share Market LIVE: Sensex tanks over 700 pts, Nifty below 16,600; ICICI Bank slips 4%

"As we move forward, let me talk about the demand side, we have seen the GST collections at their almost highest ever at Rs 1.4 lakh crore, we are seeing now pandemic wave in Omicron actually phasing out..all the other sectors which were either stop start or not open fully are now opening," Hero MotoCorp CFO Niranjan Gupta said in an investor call recently.

"So, therefore we do expect a much broader economic recovery rather than a shallow recovery as we move forward to fiscal year 2023. We have also seen the budget which is widely focusing on capex expenditure up by 35 per cent over the last year and that would trigger a cycle not only of employment and income but also actually trigger a private capex cycle."

"So, I think combined all of this should have a significant positive impact on the economy in general and the two-wheeler sector in particular," Gupta said.

Meanwhile, the firm is set to launch its first electric scooter in India this month.