Shares of Hero MotoCorp jumped on strong June sales. The stock rose as much as 2 per cent to Rs 3,484.95, in its biggest intraday percentage gain since June 12.

The automaker had on Monday reported a 13 per cent growth in June sales at 7,04,562 units over the same month last year, while its first quarter sales crossed 2.1 million units. In the year-ago month, the Delhi-based company had clocked a turnover of 6,24,185 units.

The company has also has announced an upward revision in prices of its motorcycles and scooters, with immediate effect, to partly offset the consistently rising input costs, including the prices of commodities, and currency depreciation. It did not, however, specify the quantum of increase.

Nomura says that raising prices by up to Rs 500 at ex-showroom level should support margins. The brokerage has maintained “buy” rating, and a price target of Rs 4,483.

Over 126,000 shares changed hands, compared with the 30-day moving average of 285,800. About 28 of the 49 analysts covering the stock have “buy” or higher ratings, 13 “hold” and 8 “sell” or lower; their median price target is 4,090, according to Thomson Reuters data.

As of Monday, the stock had fallen 9.8 per cent this year.

Published on July 3, 2018