Hero, Eicher Motors, Bajaj Auto shares hit 52-week high on robust Nov sales

Shares of two-wheeler manufacturers Hero MotoCorp, Eicher Motors and Bajaj Auto surged up to 7% to touch their respective 52-week highs after they witnessed robust sales in November.

The share price of Eicher Motors, the manufacturer of Royal Enfield, gained as much as 7.4% to hit a 52-week high of ₹4,182.30 apiece on the BSE. The share price of Hero MotoCorp, and Bajaj Auto rose as much as 3.47% and 2.52% to hit 52-week high of ₹3,889.05 and ₹6,199, respectively. This was in line with the broader BSE Sensex which was trading 1,107.80 or 1.64% higher at 68,588.

In November, Eicher Motors sold 80,251 units of Royal Enfield motorcycles, up 13%, as against 70,766 units in the same period last year. Of this, the sales of models with engine capacity up to 350cc stood at 74,275 units, up 13% as against 65,956 units in November last year. The sales of models with engine capacity exceeding 350 cc stood at 5,976 units, up 24%, as against 4,810 units in the same period last year. The company’s exports during the month under review surged 2% to 5,114 units as against 5,006 units in the same period last year.

Meanwhile, Bajaj Auto sales in the domestic market were up 77% in November to 2,18,597 units, as against 1,23,657 units in the same period last year. However, the company’s sales in the international market declined by 6% to 1,30,451 units as against 2,62,287 units in the same period last year.

The domestic sales of Hero MotoCorp in November stood at 4,76,286 units, up 20.2%, as against 3,79,839 units in the same period last year. The company’s exports during the month under review stood at 14,764 units as against 11,093 units in the same period last year.

In November, the company’s motorcycle sales were up 20.04% to 4,41,276 units as against 3,52,834 units in the same period last year. Hero MotoCorp’s scooter sales during the month under review stood at 49,774 units as against 38,098 units in the same period last year.

“Hero MotoCorp expects the demand to be on a healthy trajectory in the coming months on account of favourable economic indicators, including the ongoing marriage season and positive consumer sentiments,” the company says in a statement.  

Last month, brokerage firm JP Morgan revised the target price of the two-wheeler stocks, thus reflecting a positive outlook for the two-wheeler industry.

The brokerage maintains an 'overweight' rating on both stocks. JP Morgan raised the target price of Bajaj Auto from ₹6,100 to ₹6,400, whereas the target price for Hero MotoCorp has been revised from ₹3,500 to ₹3,750.

The revision in two-wheeler stocks by the brokerage firm is indicative of robust sales and profitability in the future.

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