Hero MotoCorp - Improving Rural Sentiments To Support Volume Recovery: Nirmal Bang
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Nirmal Bang Report
We recently hosted Hero MotoCorp Ltd. at our virtual conference. We are relatively cautious on the company due to soft underlying demand trends in the domestic market and note that recovery in price-sensitive entry segment may be further delayed due to the second Covid-19 wave and cost inflation.
Following are the key takeaways from our meeting.
Demand was affected due to production shutdowns and lockdown restrictions. However, the rural economy is holding reasonably better.
Inventory levels were 5-5.5 weeks in Q4 FY21, which went up to six weeks but declined in May 2021, led by stronger retails.
Commodity costs continue to be elevated and may lead to another round of price hikes depending on the trajectory.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.