Hero MotoCorp’s share price reached a 52-week high following the launch of the X440 motorcycle, a collaborative effort between Hero MotoCorp and Harley-Davidson. The stock rose by 4.33% on the BSE, hitting ₹3,159.95 per share. The X440 marks the entrance of both companies into the 440cc segment in India and is expected to boost Hero MotoCorp’s market share within the segment. Priced at ₹2.2 lakh, the X440 competes directly with Royal Enfield’s Classic 350, providing a 19% premium. The introduction of the X440 not only allows Hero MotoCorp to access technology through its partnership with Harley-Davidson but also positions the company to create motorcycles tailored to the export market. Jefferies, a global brokerage, predicts a strong recovery in the Indian two-wheeler industry and anticipates a 14% growth in Hero MotoCorp’s volumes and a 26% growth in EPS from FY23 to FY25. Antique Stock Broking suggests that the X440, with its superior build quality and contemporary features, could help Hero MotoCorp gain market share if it delivers, distributes, and services the product effectively. Hero MotoCorp plans to release a similar premium product on its own platform by the end of FY24. However, CLSA expresses concerns over Hero MotoCorp’s declining market share in its core segments and the increasing competitive intensity in the two-wheeler market. Despite this, analysts from Jefferies retain a Buy rating on the stock and raised the target price to ₹3,500 per share. CLSA maintains a Sell rating with a target price of ₹2,708 per share, Antique Stock Broking has a Hold rating and a target of ₹2,952 per share, while Phillip Capital maintains a Buy call with a target price of ₹3,478 per share. Hero MotoCorp’s share price has increased by 28% in the last three months, outperforming the Nifty50 by 17%. In addition to a favorable valuation, Jefferies highlights the stock’s 4-5% dividend yield as another attractive aspect.
Hero MotoCorp witnesses surge in share price, reaching a new 52-week high with prospects of elevated market share through the launch of the Harley X440.
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