India’s largest two-wheeler maker, Hero MotoCorp Limited, saw its shares decline by 2 percent till the afternoon on Wednesday to trade at Rs 2,605 levels. The scrip fell after the company reported muted sales in Q3.
On a consolidated basis, Hero MotoCorp Limited reported a total revenue of Rs 8,118.33 which grew sideways on a Year on Year basis from Rs 8,013.08 Crore. In the period, the company sold a total of 12.40 lakh units of motorcycles and scooters. Their profit after tax was Rs 638.21 Crore which declined 7 percent Year on Year from Rs 684.49 Crore and 10 percent Quarter on Quarter from Rs 706.37 Crore.
In addition to this, the board of directors of the company has approved an interim dividend. The company will pay a dividend of 3,250% of its face value of Rs 2 amounting to Rs 65 per share. The record date for the purpose has been set as February 17th, 2023.
Hero MotoCorp Limited, formerly Hero Honda, is an Indian multinational motorcycle and scooter manufacturer. It is the world’s largest manufacturer of 2 Wheelers, in terms of unit volumes sold by a single company.
Global research firm Citi has a ‘Buy’ rating on the stock with the target raised to Rs 3,300 per share, an upside of over 27 percent from the current market price.
The brokerage firm said that Q3 numbers were ahead of estimates as gross margin surprised positively. The management noted a revival in market share and a further rise aided by new launches. “Cost reduction initiatives should also aid margin growth. Volume should see an uptick in rural demand revives due to better harvest of rabi crop,” it added.
Written by Anoushka Roy
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