Hero Moto brakes and skids

Hero Moto seems to have hit some speed bumps today. The stock is down in the red, at one time going down 3.5% to Rs.2303. It has recovered since then and is at Rs.2338, down 2%. Its 52-week low stands at Rs.2252.

The traders are not happy with the company’s August sales numbers. It was disappointing to see the company show a drop of 14% (YoY) in sales at 4,80,537 units in August.

The company has explained that the festive season this year has begun almost three weeks late vis-à-vis last year. And this shift in season is also reflected in the subdued sales in August vis-a-vis the same period last year.

Nevertheless, the company is launching two brand new scooters for the festive season and hopes that sentiments improve and revive demand. Yet, if rainfall does not improve, this festive season could also end in a damp squib.