2 days Ago By CNBCTV18
Shares of Hero MotoCorp Ltd., the two-wheeler manufacturer, will be in focus on Friday, January 3, after their sales for the month of December not only declined on a year-on-year basis, but also missed expectations from a CNBC-TV18 poll. Share Market View All Nifty Gainers View All Company Value Change %Change The company sold 3.
24 lakh units in December, a 17.5% drop from last December's sales figure of 3.77 lakh units.
Domestic sales in December saw a drop of 22%, while exports nearly doubled from last year to 30,754 units. The overall sales figure was well below CNBC-TV18's poll, which expected a 5% drop in sales to 4.78 lakh units.
For the full year, Hero MotoCorp sold 7.5% more units (59.11 lakh) compared to 2023.
In comparison, Hero's other two-wheeler peers like TVS Motor reported a 7% growth in sales, while Eicher Motors' Royal Enfield sales went up by 25% in December, sending the stock 9% higher on Thursday. Although it must be noted that both Hero MotoCorp and the Royal Enfield cater to different product categories. In anticipation of their sales figures and looking at sales from TVS and Royal Enfield, shares of Hero MotoCorp too ended 3% higher on Thursday.
Bajaj Auto had also reported a 1% drop in sales in December to 3.23 lakh units, which was below the CNBC-TV18 poll estimate of 3.55 lakh units.
In a note on Wednesday, brokerage firm Emkay wrote that the steep correction seen in shares of Hero MotoCorp and Bajaj Auto is unwarranted and that the outlook on exports is recovering and is poised for a sharp recovery. Looking at the VAHAN data for mid-December, UBS had projected both Hero and Bajaj to report a drop of 7% - 9% for the full month. Shares of Hero MotoCorp ended 2.
9% higher on Thursday at ₹4,304, having corrected 32% from its recent peak of ₹6,246..
