Hero MotoCorp, TVS Motor hit 52-week highs; Bajaj Auto scales fresh peak

Shares of two-wheeler companies were in focus with hitting a new high, while and hitting their respective 52-week highs level in an otherwise weak market on expectation of double digit growth in domestic market in FY22, driven by a low base and a stable demand environment.

At 02:50 pm, these three stocks were trading higher in the range of 2 per cent to 4 per cent on the BSE. In comparison, the S&P BSE Sensex was down 0.75 per cent, while the S&P BSE Auto index was down 0.45 per cent on the BSE.

Among individual stocks, rallied 5 per cent to Rs 548 in the intra-day trade, gaining 8 per cent in the past two trading days. The company is scheduled to announce its October-December quarter (Q3FY21) results on Thursday, January 28, and may declare interim dividend, if any for the financial year 2020-21 (FY21).

Hero MotoCorp, on the other hand, advanced 4 per cent to Rs 3,520, surging 8 per cent in the two trading days. The world’s largest manufacturer of motorcycles and scooters, last week announced that it has surpassed the significant milestone of 100 million units in cumulative production.

“As part of the next five-year plan, will introduce over 10 products – including variants, refreshes and upgrades – every year. also has a steep growth target for its outside India. It will continue to grow its operations in these and also enter key in new geographies,” the company said in a press release.

That apart, shares of hit a new high of Rs 4,209, up 2 per cent in the intra-day trade today, having rallied 18 per cent in the past one week, after the company reported an expansion in operating Ebitda (earnings before interest, taxes, depreciation, and amortization) margin to 19.8 per cent from 18.4 per cent in the year-ago quarter. The operating performance was driven by favorable mix, lower marketing spends, and operating leverage. Overall, the management expects demand momentum to continue going forward.

is actively working on an electric 3W, which is planned to be launched in 2HFY22. Supply-side issues in e-Chetak are expected to be resolved in 3-4 months and the company plans to expand e-Chetak’s footprint to top 24 cities of India by the end of FY22,” analyst at Nirmal Bang Equities said in result update.

The brokerage firm expects Ebitda (earnings before interest, taxes, depreciation, and amortization) margin to improve by 80 basis points (bps) over the next two years and expects the adverse impact of higher input costs to be offset by improvement in product/segment mix.

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