Hero Moto share price top gainer among Nifty50 stocks on strong festive sales

livemint.com:

Hero MotoCorp was largest gainer amongst Nifty stock on Thursday, Hero MotoCorp share prices ended the day with gains of 3.34% on the NSE. The record festive sales logged by the company propped up the investor sentiments. In its press release Hero MotoCorp said that it recorded its highest-ever festive sales, clocking more than 14 lakh (1.4 million) units in retail sales during the 32-day festive period - between the first day of the Navratras and Bhai Dooj – this year.

Riding on robust demand across rural markets as well as steady retail off-take in key urban centers, the Company registered a 19% growth over the previous year, and surpassed its previous highest retail of 12.7 lakh units which was recorded in the festive period of 2019. Also read- Nifty 50 covered the entire October drop in last 10 sessions, up 3.59% in Nov The strong festive sales by Hero MotoCorp is seen as good news considering concerns that have persisted on pick up in sales of entry level two wheelers for industry as a whole. The Hero MotoCorp release also indicates that the rural demand, which was lagging the urban demand over the last few quarters, is showing improvement.

This if sustains can help drive performance of Hero over the coming quarters. The wholesale dispatches for the month of October already had remained strong ahead of festive season Hero MotoCorp had recorded 26% y-o-y rise in domestic volumes during October. Its Scooter volumes grew 30% y-y; motorcycles grew 26% y-o-y .