Normal monsoon, new products should help Hero MotoCorp's volume growth

Hero MotoCorp (HMCL) was among the most affected by the slowdown in the two-wheeler segment, given that a larger share of the company’s sales comes from rural markets. 

While its FY19 volumes were up only 3 per cent year-on-year (YoY), the first two months of FY20 have seen a fall of 12 per cent. This has weighed on the Street’s sentiment and the stock is down 25 per cent from its year-ago level. 

However, with the monsoon setting in, market share gains for the company are likely in the north. Volumes, too, are expected to grow over the next couple of months,