Hero MotoCorp shares under pressure after Splendor Plus maker's mixed Q1 performance; here's what investors may do
Hero MotoCorp shares were under pressure on Friday, a day after the auto major reported a mixed set of results for the April-June period. Brokerages are divided on the stock, with their targets ranging from Rs 2,344 to Rs 3,600.
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Hero MotoCorp shares fell in early deals on Friday, a day after the auto major reported a mixed set of quarterly numbers. The stock of Hero MotoCorp — whose popular models include Splendor Plus, HF Deluxe, Passion Plus and Pleasure Plus — declined by as much as Rs 33.9, or 1.1 per cent, to Rs 3,000.4 apiece within the first few minutes of trade on BSE.
EDITOR'S TAKE | Hero MotoCorp futures find support at Rs 2,950
Zee Business Managing Editor Anil Singhvi said the outlook for the company is positive for the second half of the year.
He sees support for Hero MotoCorp futures at Rs 2,950 and a higher level at Rs 3,100.
Hero MotoCorp Q1 results
After market hours on Thursday, Hero MotoCorp reported a 32 per cent jump in standalone net profit to Rs 825 crore and revenue growth at 4.5 per cent to Rs 8,767 crore for the first quarter of the current financial year compared with the corresponding period a year ago.
An exceptional expenditure of Rs 160 crore, towards a voluntary retirement scheme, hurt the company's profitability.
The company reported other income of Rs 222 crore for the three-month period as against Rs 53 crore for the year-ago quarter.
The auto manufacturer posted Rs 1,206 crore in earnings before interest, taxes, depreciation and amortisation (EBITDA) as against Rs 941 crore for the year-ago period.
Its margin improved by 260 basis points to 13.8 per cent for the June quarter.
According to Zee Business research, the company's quarterly net profit was estimated at Rs 855 crore, revenue at Rs 8,930 crore, EBITDA at Rs 1,160 crore and margin at 13 per cent.
ALSO READ: Hero MotoCorp receives 25,597 bookings for Harley-Davidson X440
How brokerages rate Hero MotoCorp after the Hero MotoCorp earnings announcement
| Brokerage | Rating | Target price (TP) | TP vs Thursday's closing price |
| Morgan Stanley | Underweight | Rs 2,344 | -22.7% |
| Jefferies | Buy | Rs 3,500 | +15.3% |
| Citi | Buy | Reduced to Rs 3,600 from Rs 3,650 | +18.6% |
| Macquarie | Neutral | Rs 2,760 | -9% |
Hero MotoCorp shares finished the June quarter 24 per cent stronger, sharply outperforming a 10.5 per cent rise in the Nifty.
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