Hero MotoCorp shares rise after auto major announces price hike in select models; why analysts are divided
Hero MotoCorp share price: The Indian automobile industry is currently working to make their products meet the second phase of BSVI emission norms from April 1.
Hero MotoCorp share price: Shares in Hero MotoCorp – India’s second largest two-wheeler maker by sales – were in demand on Thursday after the company announced a hike in the ex-showroom prices of select motorcycles and scooters. Hero MotoCorp shares finished the day 0.3 per cent higher at Rs 2,361.6 apiece on BSE, having climbed up as much as 1.3 per cent to Rs 2,384 apiece during the session.
Hero MotoCorp price hike
Hero MotoCorp will increase the prices by around two per cent from April 1, 2023, it said in a regulatory filing released after market hours on Wednesday,
The company said the price hike was necessitated mainly on account of increase in costs of the transition to on-board diagnostics (OBD-II).
What are stricter emission norms?
The Indian automobile industry is currently working to meet the second phase of BSVI emission norms. From April 1, vehicles will need to have an on-board self-diagnostic device to monitor the real-time driving emission levels.
The device will constantly monitor key parts for meeting emission standards such as the catalytic converter and oxygen sensors to keep a close watch on emissions.
What analysts make of Hero MotoCorp
Himanshu Gupta, VP-Research at Globe Capital Markets, suggests avoiding Hero MotoCorp shares. He told Zee Business that a temporary rebound towards Rs 2,400/2,420 is likely in the stock mainly due to the news of price hikes, but there is no reversal pattern on the charts that calls for an aggressive ‘buy’.
Hero MotoCorp stock has been an underperformer in the long run, he said.
Vikas Sethi, MD at Sethi Finmart, is bullish on Hero MotoCorp. He recomments buying the stock for a target of Rs 2,400 with a stop loss at Rs 2,335.
Hero MotoCorp share price: Historical performance
Hero MotoCorp shares have lost about 14 per cent of their value in the past six months alone, a period in which the Nifty50 benchmark has declined one per cent.
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