Hero MotoCorp May sales: Stock price rises nearly 4% on upbeat monthly sales
Hero MotoCorp expects the upside momentum in sales to continue in the coming months, driven by an uptick in customer sentiments, forecast of normal monsoon and new launches in the premium segment.
PremiumHero MotoCorp share price rose nearly 4% in early trade on Friday after the company reported strong sales in the month of May 2023. The stock price rose as much as 3.95% to ₹2,911.65 apiece on the BSE.
The shares of Hero MotoCorp, the largest two-wheeler manufacturer in the world, are less than 3% away from its 52-week high of ₹2,939.35 apiece, hit on August 18, 2022.
The rally in Hero MotoCorp stock price comes after the company’s total vehicle sales in May grew 6.7% to 519,474 units from 486,704 units in the same month last year.
The company expects the upside momentum in sales to continue in the coming months, driven by an uptick in customer sentiments, forecast of normal monsoon and new launches in the premium segment.
Read here: Hero MotoCorp sells more than 5.9 lakh motorcycles in May, expects trend to continue
Hero MotoCorp sold 489,336 motorcycles during the month, a rise of 8.2% from 452,246 motorcycles sold in the corresponding month of last year.
Scooter sales, however, declined 12.5% to 30,138 units from 34,458 units, YoY.
The company’s domestic sales increased to 508,309 units in May 2023, from 466,466 units in May last year. Exports declined to 11,165 units from 20,238 units, YoY.
ICICI Securities believes the automobile sector’s two-wheeler retail sales have been showing signs of resilience and revival since the beginning of CY23.
“This trend continued to help two-wheeler wholesales, which reported around 30% domestic growth YoY in May’23 on a benign base, which we believe would continue till H1FY24. Other than urban market revival, which already happened in FY23, we believe the current growth in 2Ws is also aided by gradual uptick in rural 2W demand," ICICI Securities said.
At 10:05 am, the shares of Hero MotoCorp were trading 1.75% higher at ₹2,850.00 apiece on the BSE.
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