Hero MotoCorp to increase two-wheeler prices from July 1; stock turns positive

Homegrown two-wheeler major Hero MotoCorp on Monday announced that it would "make an upward revision in the ex-showroom prices of select motorcycles and scooters, with effect from July 1, 2024."

The price revision will be up to Rs 1,500 and the exact quantum of increase would vary by specific model and market, Hero stated in a BSE filing. The revision has been necessitated to partially offset the impact of higher input costs, it added.

Hero MotoCorp shares turned positive after the announcement. The stock rose 0.52 per cent to hit a day high of Rs 5,480.

Around 3,678 shares were last seen changing hands on BSE today. The figure was lower than the two-week average volume of 29,000 shares. Turnover on the counter stood at Rs 2 crore, commanding a market capitalisation (m-cap) of Rs 1,09,553.25 crore.

There were 52,442 sell orders as against buy orders of 9,557 shares.

The counter was trading lower than the 5-day and 10-day simple moving averages (SMAs) but higher than the 20-day, 30-, 50-, 100-, 150-day and 200-day SMAs. The stock's 14-day relative strength index (RSI) came at 55.15. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 27.47 against a price-to-book (P/B) value of 6.06. Earnings per share (EPS) stood at 198.48 with a return on equity of 22.06.

In a separate development, the company said it has invested Rs 124 crore into electric scooter maker Ather Energy to pick up a further 2.2 per cent share. With the funding, Hero MotoCorp, which was already the largest shareholder in Ather, holds over 40 per cent of the firm's total shareholding.

As of March 2024, promoters held a 34.76 per cent stake in the two-wheeler maker.