Hero MotoCorp, the world’s largest manufacturer of motorcycles and scooters, crossed ₹4,000 apiece in today's trade after six years. The last time the stock reached this level was in September 2017. Remarkably, the stock concluded eight out of the last nine months in positive territory, and November stood out with the highest monthly gain of 23.66%.
For the year as a whole, the shares surged from ₹2,738 to ₹4,070, reflecting a remarkable gain of 48.64%. This represents the stock's most impressive annual performance since CY14. Also Read: 2023 in review: Over 40 Nifty50 stocks rose between 10% and 90%; Tata Motors, NTPC top gainers During today's session, the stock surged by 3.43%, reaching a new 52-week high of ₹4,079 per share.
Notably, the stock is just 0.60% away from surpassing its all-time high of ₹4,091 per share. In a recent note, domestic brokerage firm Motilal Oswal maintained its 'buy' rating on the stock with a target price of ₹4,480 apiece. The brokerage highlights the recovery in Hero MotoCorp's core product portfolio and its strategic expansion into premium and electric vehicles (EVs), positioning it favorably in the 2W OEM space.
Despite the usual post-festival slowdown, domestic 2W demand has sustained strong growth this year, fueled in part by strong demand during the marriage season, particularly in the central and northern regions, the brokerage noted. Also Read: 27 Nifty 50 stocks recorded new all-time highs this year; will the rally continue in 2024? This positive trend aligns well with Hero MotoCorp's stronghold in key states like UP (54% market share), Rajasthan (58%), MP (42%), and Bihar (45%). According to the brokerage, these states collectively contribute 35% of the domestic 2W demand.
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