Hero MotoCorp share price with gains of more than 1% scales 52 week highs. Should you Buy, Sell or Hold?
Hero MotoCorp share price gained more than 1% during the intraday trades to scale fresh 52-week highs on Monday. The stock has given stellar returns of 28% since start of November as the festival season sales boosted investor confidence. Not only the channel inventory got reduced, the pickup in entry levels motorcycle sales and some uptick seen in rural demand has lifted investor confidence.
Hero MotoCorp registered a double-digit growth of 26% on two-wheeler sales during November'2023 over the corresponding month of the previous fiscal . Also read- Stocks to buy this week: ICICI Bank, Kotak Mahindra Bank, YES Bank, Wipro, Tata Steel among 9 technical picks The Two-Wheeler industry volumes grew 10% y-o-y by FY24 year to date. Although they were still down 13% from the peak of 2019, the festive sales this year were strong, up 22% y-o-y, and almost similar to the 2019 levels, better than the mediocre growth of passenger vehicles suggested HSBC Securities and Capital Markets (India) Private Limited data.
As the festival demand pace encourages, the trend continues to remain strong suggest analysts views. Normally, growth tends to slow down after the festivals, but this year it has continued well beyond that period. This is partly due to the strong demand in the marriage season, especially in the central and northern regions.
Analysts at Motilal Oswal Financial Services believe, that the trend should benefit Hero MotoCorp the most, as it has a strong presence in states like UP (54% market share), Rajasthan (58%), MP (42%) and Bihar (45%). These states collectively contribute 35% of the domestic two-wheeler demand. The ongoing growth momentum should ensure an expansion in Hero MotoCorp core 100CC/110CC portfolio, which
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