The shares of this Automobile stock under the “Large-cap” category fell 4 percent after various news reports cited a raid that took place at the residence of the company’s Chairman.
With a market capitalization of Rs 61,591 crores, the stocks of Hero MotoCorp Limited had a good start to Tuesday’s trading session and hit a fresh 52-week high level at Rs 3,244 apiece.
Soon after reaching the 52-week high, the company’s stock nosedived and is currently trading at Rs 3,085 indicating a fall of around 4 percent as compared to the previous closing levels of Rs 3,203.70.
The company’s stock saw a sudden fall after various news reports citing a raid carried out by the Enforcement Directorate (ED) at the residence of Mr. Pawan Munjal, Chairman of Hero Motocorp Limited. According to a CNBC report, the ED registered a case under the Prevention of Money Laundering Act (PMLA).
The ED took action post some inputs from the Department of Revenue Intelligence (DRI). The DRI also caught a close aide of Mr. Munjal with a large sum of undeclared foreign currency at the airport.
In recent quarters, the basic performance indicators such as the operating revenues and net profits showed decent growth with the former increasing from Rs 8,118 crores during Q3FY22-23 to Rs 8,434 crores during Q4FY22-23, and, the latter moving up from Rs 638 crores to Rs 845 crores.
As per the shareholding data available for the June 2023 quarter, the Promoters hold a 34.77 percent stake, and the Foreign Institutional Investors (FIIs) hold a 28.1 percent stake in the company.
Hero MotoCorp Limited is an Automobile company domiciled in India. The company is engaged in the business of manufacturing as well as distributing motorcycles, scooters, and associated spare parts. The revenue mix showcases the sale of motorcycles comprising the majority of numbers.
Written by Amit Madnani
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