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Hero MotoCorp shares closed 6% higher at Rs 2,674.10 on Thursday.
financial services firm Better to base your estimates on improving demand for the two wheeler industry the supply chainHigh rural exposure and scope for channel restocking with existing inventory in six weeks – less than the normal 8-10 weeks of inventory for the festive season.
“Given higher exposure to rural and better supply chain versus peers, HMCL has been gaining market share of late. This points to very solid first half growth, with normal channel restocking for the festive season,” said the bank. of America Securities said.
The firm also highly regards the concerns surrounding the transition to electric vehicles.
“Hero MotoCorp’s portfolio of entry bikes is vulnerable to the EV shift, at least for now and the e-scooter launch scheduled for calendar year 2022,” Bank of America Securities said.
With the stock trading below its historical average price-to-earnings ratio at low cyclical earnings, the firm sees a buying opportunity at current levels.
Bank of America Securities said Hero MotoCorp may register a compounded growth of 10% in volumes in the FY22-FY24 period.
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