Hero Motocorp shares fall up to 4% after 2-wheeler company's Q1 earnings: should you buy, hold or sell stock?

Hero MotoCorp share price, Hero MotoCorp Q1 results: Hero MotoCorpshares in Wednesday's trade (August 14) fall up to 4 per cent at day's low to Rs 5,040.2 after the company posted its results post market hours on Tuesday. Ahead of its Q1 earnings, the company's scrip closed at Rs 5,240.45, down over 1.36 per cent.

At the last count, shares of the company traded with a drag of over 2 per cent at Rs 5,121.15 per share.

The net profit declared by the company for the reporting quarter translates into an increase of 36.1 per cent year-on-year (YoY). However, it fell short of analysts estimates. Revenue at the 2-wheeler major during the first quarter stood at Rs 10,143.7 crore, marking an increase of 15.7 per cent over the corresponding period a year ago. 

 Zee Business research estimated the company to register a standalone net profit of Rs 1,200 crore and revenue of Rs 10,580 crore for the June quarter. 

How brokerages view the stock after Q1FY25 results?

Jefferies continued with its 'buy' stance on the brokerage for a target of Rs 5,650, implying gains of 8 per cent from the previous close. As per the brokerage, the company posted good growth but missed estimates. This was as the company reported lower- than-expected average selling price (ASP) and margin. Further, the company has a slew of product launches in the pipeline in both EV and internal combustion engine (ICE) categories.

Meanwhile, Macquarie maintains its outperform call on the stock for a target of Rs 6,177, signalling possibility of potential gains of 18 per cent.