Hero MotoCorp stock gains as Street cheers price hike announcement; why analysts are divided?

Hero MotoCorp share price: Shares of Hero MotoCorp – India’s leading two-wheeler maker – traded in the green on the D-street after the automotive company announced an upward revision in the ex-showroom prices of select motorcycles and scooters on Wednesday.

The stock gained as much as 1 per cent to touch a day’s high level of Rs 2384 per share on the BSE during the early morning session. It has been trading above the flatline as the day progressed.

However, at around 01:00 PM, the scrip quoted Rs 2369.40 per share, which was 0.65 per cent or Rs 15.3 higher as compared to Wednesday’s closing of Rs 2354.10 apiece.

What do analysts say?

Zee Business panelist Himanshu Gupta suggested investors to avoid Hero MotoCorp. He believes a temporary rebound of Rs 2400/2420 is likely in the stock mainly due to price hike news, but there is no reversal pattern on the chart for aggressive ‘buy’.

The market expert said Hero MotoCorp stock has been an underperformer in the long run.

On the contrary, another Zee Business panelist and market expert Vikas Sethi is bullish on two-wheeler maker Hero MotoCorp on the price hike announcement of the company. Sethi termed this as positive for the stock and advised to ‘buy’ for a target of Rs 2,400 with a stop loss of Rs 2,335.

Hero MotoCorp announces price hike

Hero MotoCorp announced an upward revision of around 2 per cent in the prices of select motorcycles and scooters from April 1, 2023, on Wednesday after market hours.

The price revision has been necessitated mainly due to cost increases on account of the OBD 2 (on-board diagnostics) transition, the company said.

What are stricter emission norms?

The Indian automobile industry is currently working to make their products meet the second phase of BSVI. From April 1, vehicles will need to have an on-board self-diagnostic device to monitor the real-time driving emission levels.

The device will constantly monitor key parts for meeting emission standards such as the catalytic converter and oxygen sensors, to keep a close watch on emissions.

Hero MotoCorp share price history

Hero MotoCorp stock has underperformed the Nifty50 index in the last one year and six months period as it has cracked around 13 and 14 per cent in the said period as compared to nearly 6 and 1 per cent fall in the benchmark index, respectively.

The counter has a 52-week high-low range of Rs 2,939.35 - 2,151.60 per share on the BSE.

stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.