Hero MotoCorp up 3% on strong July sales

The stock was up 3% to Rs 3,838 after the company reported 17% growth 2-wheeler sales in July.

Hero MotoCorp was trading 3% higher at Rs 3,838 on BSE after the company reported a healthy 17% growth in total two-wheeler sales of 623,269 units in July. The world’s largest two-wheeler manufacture had sold 532,113 units in the corresponding month of the previous fiscal (July 2016).

Despite sluggish sales for the first few days of the month due the transition to Goods & Service Tax (GST), the company recorded six-lakh plus sales for the month of July, Hero MotoCorp said in a press release.

This is the third consecutive month of six-lakh plus sales for the company in this fiscal, having clocked 624,185 units in June and 633,884 units in May.

The company said it is confident of carrying forward this growth momentum into the upcoming festive season.

“With dealers replenishing inventories in the system (diminished inventories for GST implementation) and strong underlying demand trends due to rural demand recovery, Hero MotoCorp and TVS Motors reported strong two wheeler sales in the domestic market,” IIFL Wealth Management said in a note.