Hero Moto on the buzz
Hero Motocorp is the buzzing stock today; opening 1.5% higher at Rs.2710, the stock rose to an intraday high at Rs.2767.50, up over 3.5%. Its 52-week high is at Rs.2980.
The stock is up after the company said that it will be hiking prices of its motorcycles and scooters, with effect from July 1, 2022. The price revision will be up to Rs. 3000.
The exact quantum of increase will be subject to the specific model and market.
The price revision has been necessitated to partially offset the steadily growing overall cost inflation, including commodity prices.
The first price hike was in early Jan this year, then another one in April – both capped at Rs.2000 each. And if we go by the inflation trajectory, this price hike in July might not be the last one of the year. A total of Rs.10k price hike this year is penned in by analysts.