Hero MotoCorp, TVS Motors, Bajaj Auto share price at 52 week highs as festive sales, wedding season to propel growth

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Hero MotoCorp Ltd, TVS Motor Company Ltd, Bajaj Auto Ltd with gains of 1-4.5% scaled 52-week highs on Wednesday. The sentiments on two-wheeler manufacturers have improved led by strong festive season sales. The S&P BSE Auto Index is up almost 10% in November as all automobile sales are likely to have caught pace during the festival season For the two-wheeler manufacturers the retails are expected to grow 9-11% year-on-year in November’2023, led by strong demand in the first half of the month, wherein volumes grew 14-16% year-on-year, said analysts at Motilal Oswal Financial Services.

Also read- Tata Motors shares hit all-time high ahead of Tata Technologies IPO listing date The festive season sales have remained strong. Himanshu Singh Research analyst at Prabhudas Lilladher pointed out that rural sales have turned out to be stronger than expected. The sales in the northern region have been strong.

The election season also has helped lifted demand in the North and Central India, while the wedding season further has been driving overall sales. As the pickup in Two-wheeler sales remain positive for all the OEMs (Original Equipment manufacturers) , Hero MotoCorp is to see higher benefits with a strong entry level portfolio. The Channel inventory for Hero MotoCorp must have come down to 4-5 week compared to normal channel inventory of 7-8 weeks of sales that Hero MotoCorp dealers maintain, said Himanshu.

The sales are likely to remain strong during the month of December also. The strong wedding season keeps sales momentum strong feels Himanshu Singh. Analysts at Motilal Oswal Financial Services are of the view that the demand has improved in almost all the regions and dealers expect the momentum to continue, especially in the