Hero MotoCorp hits new high after nearly 9% intraday gains; here's why

Shares of the 2-wheeler major Hero MotoCorp zoomed to a fresh all-time high in Wednesday’s trade (June 5, 2024) amid across the board buying after the previous day’s meltdown.

At the day’s high the stock scaled nearly 9 per cent to a record high of Rs 5775.20, while at the last count it was up by 6 per cent at Rs 5,624.85 apiece on the NSE.

The spike in the stock price comes as post the election, the focus on the rural markets is seen to increase and this is seen to bode well for the auto space at large and in particular Hero MotoCorp that draws as much as 33 per cent of its revenues from the rural space.

Earlier the company in an exchange filing said it sold 498,123 units of motorcycles and scooters in May 2024, which is lower by 4.11 per cent on-year. Further, while the sales of its scooters and motorcycles in the domestic market totalled to 479,450 units, a decline of 5.68 per cent, exports at the company registered a significant 67.25 per cent rise on-year to 18,673 units.

Meanwhile, the company became the first entity from the auto space to join the ONDC Network. This partnership will expand the company's reach even beyond its largest physical network. 

PhilipCapital in its report post election verdict wherein it warrants vigilance in equity amid the lack of BJP majority has listed Hero MotoCorp among its array of stock picks.