Hero MotoCorp zooms past Rs 6,000 mark for first time ever; can you still ride the rally?

Hero MotoCorp (HEROMOTOCO) shares on Wednesday surged past the Rs 6,000 mark for the first time ever, taking its overall gains to more than 45 per cent for the year so far. The stock of New Delhi-headquartered auto giant gained by as much as Rs 184.3, or 3.1 per cent, to a record Rs 6,146.6 apiece on BSE, surpassing an existing peak of Rs 5,984 this week.

However, Hero MotoCorp shares barely managed to finish the day in the green, up by Rs 2.5 for the day at Rs 5,964.8 apiece on the bourse.

The stock traded in heavy volumes. As many as 56,000 Hero MotoCorp shares changed hands during the session a daily average of 24,000 recorded in the past two weeks, according to provisional exchange data. 

Can you expect momentum in Hero MotoCorp shares to continue?

Here are some of the key triggers to track for the stock going forward, according to Zee Business research:

• A potential recovery in rural demand
• Value unlocking to take place with proposed IPOs of Hero FinCorp and Aether Energy (both companies have filed their draft red herring prospectuses) 
• Details about the company's plans to enter the electric three-wheeler space
• The company is in talks to pick a stake in Bengaluru-based startup Altigreen Propulsion Labs; Hero MotoCorp can invest up to Rs 900 crore in the startup

Valuation vs Peers  

Most analysts are upbeat about the auto stocks with foreseeable valuation comfort. 

Catch all the latest stock market updates here. For all other news related to business, market, tech and auto, visit Zeebiz.com.