HERO MOTOCORP LTDShort
Hero news simplified
Updated
Hero launched some models in Turkey, and appreciated 8 percent in stock spot price.
However, hero motor export figures are next to nothing. Just about 20000 units.
Move is disproportionate, sell CE (call option) of 2700s toward 2585(200DMA level), and then 2500.
Hero has tried to find solace at 200 DMA, in recent times.
Hero stock price is expensive, given this market. Not to mention prices of several other auto nifty movers as well.
In other news, Hero is going to raise it's two-wheeler prices by (upto) 3,000/- next month.
Increasing product price gives hero less of a price edge over other competitors. Keep in mind Hero sale figures are still lower than pre-covid levels (66% sale figures, or two-months-out-of-three in this quarter are out already—and sales are below pre-covid levels).
Demand is down.
Hero can rest at 2500, 2350 could be considered a buy price.
However, hero motor export figures are next to nothing. Just about 20000 units.
Move is disproportionate, sell CE (call option) of 2700s toward 2585(200DMA level), and then 2500.
Hero has tried to find solace at 200 DMA, in recent times.
Hero stock price is expensive, given this market. Not to mention prices of several other auto nifty movers as well.
In other news, Hero is going to raise it's two-wheeler prices by (upto) 3,000/- next month.
Increasing product price gives hero less of a price edge over other competitors. Keep in mind Hero sale figures are still lower than pre-covid levels (66% sale figures, or two-months-out-of-three in this quarter are out already—and sales are below pre-covid levels).
Demand is down.
Hero can rest at 2500, 2350 could be considered a buy price.
Note
Hero is yet to enter EV space. Hero cannot use it's recognizable brand name Hero due to legal reasons—will have to sell its bikes as Vida bike, when they launch near diwali season.Demand is not back to pre-covid levels, it is 20% down. Correction back to 200DMA will be seen when monthly sales figures are out within 10 days.
Even bajaj auto is seeming expensive again.
Will be watching stock for possibility of selling CE. Target within 10 days: 2500.
Would show stability at 2500 for near term.
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