Shares of Hero MotoCorp Limited closed over 1 percent higher at Rs 4,744 on February 13, rebounding from a 4 percent decline the previous day after several brokerages turned bearish on the two-wheeler major due to valuation concerns.
The stock closed below its intraday high, having surged 3 percent earlier in the session.
In the third quarter, the company reported a 51 percent year-on-year increase in net profit, reaching Rs 1,073.38 crore. This substantial growth was attributed to factors such as lower input costs, operational leverage, higher average selling prices, and a significant surge in volumes.
According to analysts, Hero’s current valuations reflect the cyclical recovery, with the stock delivering a remarkable return of over 91 percent in the past year. Global brokerage firm Morgan Stanley maintains an “underweight” rating on the stock with a target price of Rs 3,638, representing a downside of about 25 percent from the previous close. The firm cited disruption risk in the core segment and elevated valuations for the rating.
