New Delhi, Mar 29 (PTI) Shares of Hero MotoCorp on Tuesday tumbled over 7 per cent amid reports that the I-T Department has found certain false expenses claims by the company.
The stock dived 7.08 per cent to settle at Rs 2,208.35 apiece on the BSE. During the day, it tumbled 9.32 per cent to Rs 2,155.
On the NSE, it tanked 7.03 per cent to settle at Rs 2,210.65.
On Tuesday, BSE sought a clarification from the company with reference to reports saying that I-T Department found Rs 1,000 crore false expenses claims by Hero MotoCorp.
“The allegations made in the press report are not borne out of any document that have been served on us or our internal documents. Therefore, we categorically deny the speculative press reports,” the company told the bourse.
“We wish to clarify that officials from the Income Tax department visited our offices in the previous week,” the company said in a filing to the exchange.
Ashwin Patil, Senior Research Analyst of LKP Securities, said that despite the fall, the stock does not look very attractive to us in the long term mainly due to pressure on its volumes and a tepid outlook given the rise in fuel costs, among other factors.
“However, the knee-jerk reaction shown today in the stock may see some recovery tomorrow provided the management gives a satisfactory clarification…,” he said. PTI SUM SHW SHW
