Hero MotoCorp rallies about 2% amid bearish market, here’s why!
The two-wheeler giant strengthens its presence in Turkey.
World’s largest two-wheeler manufacturing company by volume, Hero MotoCorp Ltd has been trending on Dalal Street as it has rallied by about 2% from its previous close of Rs 2,498.90. The scrip opened at Rs 2,501 and made a day’s high of Rs 2,552(+2.12%). At 11:00 am on 22nd June, the stock was trading at Rs 2,549.00 on the BSE.
The upside was witnessed on the back of the company launching its three new products in Turkey. These three Euro-5 compliant two-wheelers are: the Xpulse 200 4V motorcycle and Dash 110 & Dash 125 scooters. The Xpulse 200 is a popular motorbike in Turkey and the two scooters are known for quality. The Soysal Group, which is one of the most diversified and reputed business groups in the country, has been Hero MotoCorp’s exclusive distributor in Turkey since 2014. This is one of the strengths of the company.
Talking about its recent quarterly results, in Q4FY22, revenue decreased by 13.73% YoY to Rs 7496.55 crore from Rs 8689.74 crore in Q4FY21. On a sequential basis, the top-line was down by 6.45%. PBIDT (Ex OI) was reported at Rs 855.95 crore, down by 30.22% as compared to the year-ago period and the corresponding margin was reported at 11.42%, contracting by 270 basis points YoY. PAT was reported at Rs 640.87 crore, down by 24.38% from Rs 847.53 crore in the same quarter of the previous fiscal year. The PAT margin stood at 8.55% in Q4FY22 contracting from 9.75% in Q4FY21.
Hero MotoCorp is engaged in the manufacturing and selling of motorised two-wheelers, spare parts and related services. The company is a leading two-wheeler manufacturer and has a dominant presence in the domestic market as well as international markets.
The stock has a 52-week high of Rs 2,994.55 and a 52-week low of Rs 2,148.00.
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