The stock of two-wheelers company was trading close to its 52-week high of Rs 2,939.35, touched on August 18, 2022. In past one month, the stock has rallied 16 per cent, as compared to 2.1 per cent rise in the S&P BSE Sensex.According to ICICI Securities, in the 2-wheeler space volume prints were in line with their expectation tracking healthy retails, with HMCL surprising positively with double digit growth and reaching new highs in recent past.
HMCL said the momentum is expected to continue in the coming months, driven by an uptick in customer sentiments, forecast of normal monsoon and a host of new launches in the premium segment.
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In line with its plan for global business expansion, the company announced Motosport SA as its partner in Costa Rica – a key market in Central America. As the exclusive distributor for the sale and service of Hero MotoCorp, Motosport SA will play a key role in the rapid expansion of Hero’s network in Costa Rica, the company said.
Meanwhile, in March quarter earnings call, double-digit 2W industry revenue growth guided for FY24, on the back of improving macros and pent-up/replacement demand; demand in Rural is seen to improve now, and is maintaining momentum over Apr-May, which is typically a wedding season.
HMCL has been gaining retail market share and has planned aggressive product actions, incl. the 125cc category, for further improvement (highest-ever launches in a single year); this year would see a new launch each quarter. Actions have been planned across the product range, from the Passion Plus re-launch to the Harley-branded product at the premium end, said analysts at Emkay Global Financial Services in result update. The brokerage further said the worst of the commodity inflation is behind; HMCL retained its longer-term margin guidance of 14-16 per cent.