Shares of Hero MotoCorp Ltd traded lower on Thursday, extending their fall for the sixth straight session. The stock shed 0.17 per cent today to settle at Rs 2,495.90. The counter has lost 10 per cent in the past one month and 8.14 per cent so far this year. A total of 8,391 shares changed hands today on BSE, which was lower than the two-week average volume of 13,000 shares. Turnover on the counter stood at Rs 2.09 crore, commanding a market capitalisation (m-cap) of Rs 49,878 crore.
On the earnings front, the two-wheeler maker reported a 2.41 per cent rise in consolidated net profit, at Rs 721.24 crore, in the third quarter that ended December 31, 2022 (Q3 FY23) against Rs 704.24 crore in the same period a year ago.
The stock was in focus today after Hero MotoCorp said it has started operations of its public charging infrastructure in Bengaluru, Delhi and Jaipur.
Kotak Institutional Equities has assigned a ‘Reduce’ call while pegging the bikemaker’s stock at Rs 2,600 over the next 12 months.
Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, “Immediate resistance on the counter is placed around Rs 2,600-2,620 odd levels from a short-term perspective.”
Pravesh Gour, Senior Technical Analyst at Swastika Investmart, said that a close below the 2500 mark could lead to a major weakness towards the Rs 2,350 level.
Ganesh Dongre, Senior Manager – Technical Research Analyst, Anand Rathi Shares and Stock Brokers, said, “A close below Rs 2,500 will further make the stock weaker. So, the next support will be at the Rs 2,200-2,300 zone. Currently, traders can avoid this stock on the buy side and wait for a fresh breakout.”
The stock traded lower than 5-day, 20-, 50-, 100- and 200-day moving averages. The counter’s 14-day RSI came at 30.51. A level below 30 is defined as oversold while a value above 70 is considered overbought. The stock has a P/E ratio of 18.65. The company’s Earnings Per Share (EPS) came at 134.05, much higher than the P/E ratio.
Hero MotoCorp has an average target price of Rs 2,976.75, as per Trendlyne, suggesting a potential upside of 19.28 per cent. The scrip has a one-year beta of 0.86, indicating low volatility.
Meanwhile, Indian equity benchmarks traded lower on Thursday, extending their losing run for the fifth straight session. The domestic indices were dragged by consumer durables and financials. The 30-share BSE Sensex pack fell 139 points or 0.23 per cent to settle at 59,606; while the broader NSE Nifty index moved 43 points or 0.25 per cent down to close at 17,511.
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