With the massive demand and retail sale, Hero MotoCrop has reduced the vehicle stocks at its dealerships to less than four weeks, the lowest ever post-festive inventory.
Shares of Hero MotoCorp surged 5% on Thursday morning to trade at Rs 3,135 apiece. The share price jumped a day after the company said that retail sales of its motorcycles and scooters were more than 14 lakh during the just concluded festive season. Earlier the company had reported a strong jump in sales to dealers during the month of October. Stocks of Hero MotoCorp have gained 99.63% since March end. The firm continues to strengthen its market share further.
“In terms of valuations, there still are further upsides to the stock compared to peers,” Saji John, Auto Analysts, Geojit Financial Services told The Outlooker Online. Hero MotoCorp has a good grasp in the rural market with a high market share in the 100-105 cc segment where strong double digit growth can be expected, he added.
The retail number indicates a strong offtake for its products across motorcycle and scooter segments, according to ICICI Securities. With the massive demand and retail sale, Hero MotoCorp has reduced the vehicle stocks at its dealerships to less than four weeks, the lowest ever post-festive inventory. “This suggests that forthcoming wholesale prints could be strong again for the two-wheeler market leader,” ICICI Securities added.
Hero MotoCrop’s festival season retails were driven by the strong performance across segments, including the 100cc Splendor+ and HF Deluxe, 125cc motorcycles Glamour and Super Splendor and the Xtreme 160R and the XPulse range in the premium segment. Hero MotoCorp said that it has continued to consolidate its market share in the domestic two-wheeler market since the resumption of plant operations and retail sales in early May. In the month of October the market share increased by 500 basis points.
Acting as a catalyst for Hero MotoCorp is its recent tie up with US-based premium motorbike manufacturer, Harley Davidson. The manufacturer of the 1,800 cc Fat Boy motorbike will help Hero enter the premium segment. “New launches are supporting the upward march especially the scooter section. There still is momentum in Hero MotoCorp, compared to peers,” Saji John siad.
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