Shares of this large-cap company jumped around 3 percent in Tuesday’s trading session after joining the ONDC network. In one year, the stock has delivered more than 80 percent returns to its shareholders.
With a market capitalization of Rs. 99,798 crores, the shares of Hero MotoCorp Ltd started Tuesday’s trading session on a higher note at Rs. 4,914.90 compared to its previous close of Rs. 4,885.55. During the trading session, the shares hit a high of Rs. 5,045, gaining around 3 and are currently trading at Rs. 4,999 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that they had joined the ONDC Network, thereby becoming the first auto company in the country to join the network.
Partnering with ONDC will further enhance the reach and convenience, providing an easily accessible digital mode to customers of Hero MotoCorp. The Open Network will initially offer two-wheeler parts, accessories and merchandise and customers can discover Hero Genuine Parts by using any buyer apps on the Network, such as Paytm and Mystore, among others.
Furthermore, by improving reach and creating a fair and efficient environment for Hero MotoCorp’s channel partners, this integration speeds up order processing by enabling hyperlocal deliveries backed by Hero MotoCorp’s extensive physical distribution.
Niranjan Gupta, CEO, Hero MotoCorp, said, “At Hero MotoCorp, customer-centricity and digital innovation are at the core of everything we do. Now with ONDC Network, we have pioneered the automotive taxonomy for the auto industry, making it easier for customers to find vehicle parts and accessories to begin with. With this initiative, Hero MotoCorp is furthering the Government’s Digital India mission and we will continue to bring in more innovation in this space.”
According onto the company’s recent financial statements, the revenue decreased by 2 percent from Rs. 9,788 crores during the December quarter to Rs. 9,617 crores in the March quarter. On the other hand, the net profits declined by 14 percent from Rs. 1,091 crores to Rs. 943 crores during the same timeframe.
Moreover, In the fourth quarter of FY24, the company experienced significant sales, with 13.92 lakh units of motorcycles and scooters sold, marking a notable increase from the 12.70 lakh units sold in the same period of FY23.
Additionally, the auto company is working towards PLI scheme eligibility for upcoming products and expects significant growth in the EV business for FY25 and beyond.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 17.92 percent and a return on capital employed (RoCE) of 23.22 percent for the period spanning FY22-23. Moreover, during FY22-23 the net profit margin was at 8.61 percent.
Headquartered in New Delhi, Hero MotoCorp was incorporated in 1984. The company is engaged in the manufacturing and selling of motorized two-wheelers, spare parts, and related services and has over 9.50 million annual production capacity across 8 manufacturing facilities i.e., 6 in India and one each in Colombia and Bangladesh.
Written By Vaibhav Patil
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