The stock closed at a two-and-a-half-year high of Rs 882.75 on Friday after the company reported that its motorcycle sales grew by 22.5 per cent year-on-year for September. The company also said its cumulative sales for April-September 2008 went up by a 19.68 per cent.
According to a senior Hero Honda representative, the company has been driving growth in the industry despite a high interest rate scenario and an overall credit squeeze in the market remaining unchanged. He also said the company is expected to perform well in the coming festive season with new launches on the anvil.
The key brands that are shoring up volumes for the company include CD Deluxe in the entry segment, Glamour, the new Splendor NXG, Splendor + and Passion Plus in the deluxe segment and Hunk, CBZ X-treme and Karizma in the premium segment.
The company, which is the leader in the two-wheeler segment, is expected to witness higher than the industry growth and gain market share driven by significant presence in rural India and new product launches, according to Motilal Oswal Financial Services.