Shares of Hero MotoCorp rose around two and half per cent after the two-wheeler major reported robust numbers in the quarter ended on June 30,2022. As per the regulatory filing by the company, Hero MotoCorp on Friday reported over two-fold rise in consolidated profit after tax year-on-year (YoY). The bike and three-wheeler manufacturer consolidated profit after tax came at Rs 585.58 crore in the quarter ended June in comparison to Rs 256.46 crore in the same period last fiscal.  

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Reacting to strong numbers, Hero MotoCorp stock jumped nearly two and half per cent in Tuesday's intraday trade to Rs 2844.80 per share on the BSE. 

Meanwhile, majority of brokerage houses largely remained bullish on Hero MotoCorp despite good numbers in the quarter ended in June '22.  

Global brokerage house CLSA was of the view that the margin disappointed as pressure persisted on raw materials. Hero MotoCorp's gross margin declined 350 bps sequentially. However, It noted that the management remains positive on growth in H2 demand.  CLSA maintained an outperform rating on Hero MotoCorp with a target price of Rs 2962.  

Here is how other global brokerages rated the counter post Q1FY23 results.   

JP Morgan on Hero MotoCorp (CMP: 2762)  

Maintain Overweight, Target raised to 3030 from 2800   

Nomura on Hero MotoCorp (CMP: 2762)  

Maintain Neutral, Target raised to 2876 from 2720   

Citi on Hero MotoCorp (CMP: 2762)  

Maintain Buy, Target cut to 3100 from 3200 

Meanwhile, brokerage house LKP Securities maintained a buy with target price of Rs 3226 in 12 months.  

The brokerage's bullishness lied in good set of numbers in Q1, led by strong volume performance. Along with the volumes, maintenance of margins was the highlight of the quarter given the cost pressures, it observed.  

"Going forward, we expect decent volume trajectory with the XTech variants launches in Q1 and new launches coming up. First EV launch in the festive season will further add to the steam. Demand levers post pandemic are intact with rural story remaining strong on good monsoon. Now that the economy has opened up, normalcy has prevailed and demand is coming back on track," it added.  

Earlier, the company sold 13.90 lakh units of motorcycles and scooters during the said quarter, a growth of 36 per cent over the corresponding period in the previous fiscal, the company said in a BSE filing.  

"A combination of cost-saving measures, judicious price increases and premiumisation of model line up helped the company maintain its margins despite commodity headwinds and supply chain disruptions due to geo-political issues," it added.