Hero MotoCorp shares were trading on a flat note.
Shares of the world s largest two-wheeler maker - Hero MotoCorp - were trading on a flat note at Rs 2,831 after the company informed exchanges that it would temporarily halt operations at its manufacturing units across the country amid rising Covid-19 cases across the country. In keeping with its commitment to the safety and welfare of its people, Hero MotoCorp has decided to proactively halt operations temporarily at all of its manufacturing facilities across the country, including its Global Parts Center (GPC), in view of the ongoing escalation in the spread of Covid-19 across the country, Hero MotoCorp said in a press release on Wednesday.
Shares of Hero MotoCorp, on Tuesday, rose 2.2 per cent to Rs 3,423.50 on the BSE after the two-wheeler maker reported a 1.45 per cent increase in total sales at 5.05 lakh units in February. The company had sold 4.98 lakh units in the same month of the previous year, Hero MotoCorp said in a statement. Total motorcycle sales stood at 4.63 lakh units last month as against 4.79 lakh units in February 2020, down 3.25 per cent. Total scooter sales, however, increased over two fold to 41,744 units as compared with 18,932 units in the year-ago month, it added. In the domestic market, sales rose marginally to 4.84 lakh units last month as compared with 4.80 lakh units in the same period a year ago. Exports last month stood at 21,034 units as compared with 18,046 units in the year-ago period.
After a phenomenal rally since March 2020 low that saw the Nifty Auto index jump 132 per cent since then compared to a 93 per cent gain in the Nifty50, the rally in auto stocks may pause for now as demand cools off and companies grapple with supply-side issues, say analysts. Valuation at which some of the auto stocks are trading at is another concern. PV manufacturers are trading at expensive valuation and I do not find much comfort there. Instead, investors can look at two-wheeler manufacturers and auto ancillaries. They are a better bet given the current industry dynamics. Overall, the blanket rally in auto stocks is likely to take a breather for now, says G Chokkalingam, founder and chief investment officer at Equinomics Research.
Read more about Auto stocks in top gear; Bajaj Auto surges 9% on strong performance in Q3 on Business Standard. Bajaj Auto said the operating performance was driven by favorable mix, lower marketing spends, and operating leverage