Hero MotoCorp Share Price Declines Following UBS 'Sell' Call
Impact of UBS 'Sell' Recommendation on Hero MotoCorp Share Price
Hero MotoCorp Limited has seen a 2% drop in its share price, now at Rs 5,935, after UBS reiterated a 'sell' rating, indicating substantial concerns for the two-wheeler giant. With a target of Rs 3,350, UBS forecasts a 45% downside from its last close of Rs 6,088 on the NSE.
Retail Market Share Concerns
Despite an overall 50% gain since the year's onset, the brokerage raised alarms over dwindling retail market share. September 2024 figures indicate Hero's retail performance has plummeted, falling below 24%. While festive volumes suggest optimism, they obscure deeper challenges.
Future Plans and Operations
The company aims to initiate operations in Brazil by Q4 FY25, and has commenced dispatches to the Philippines as of March 2024. This strategic shift comes after previous plans in 2014 were postponed due to local regulations.
Profit Growth Amid Challenges
In Q1, Hero MotoCorp posted a 36% year-on-year increase in standalone net profit to Rs 1,122.63 crore, bolstered by strong sales and new launches like the Xtreme 125R. However, current trading indicates shares at Rs 5,941, marking a drop of 2.5%.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.