Hero MotoCorp fell 0.38% to Rs 1970 at 9:28 IST on BSE as the company cut two-wheeler prices after the excise duty reduction announced in the Interim Budget 2014-15.
The company made the announcement after market hours on Tuesday, 18 February 2014.
Meanwhile, the BSE Sensex was up 32.93 points, or 0.16%, to 20,667.14.
On BSE, so far 1,281 shares were traded in the counter, compared with an average volume of 21,057 shares in the past one quarter.
The stock hit a high of Rs 1,995.75 and a low of Rs 1,970 so far during the day. The stock hit a 52-week high of Rs 2,214.70 on 10 December 2013. The stock hit a 52-week low of Rs 1,434.05 on 15 April 2013.
The stock had underperformed the market over the past one month till 18 February 2014, sliding 4.70% compared with the Sensex's 2.04% fall. The scrip had underperformed the market in past one quarter, falling 3.86% as against Sensex's 1.04% decline.
The large-cap company has an equity capital of Rs 39.94 crore. Face value per share is Rs 2.
Hero MotorCorp said that it has decided to pass on the entire benefit of the excise duty cut to customers. The company said it has judiciously spread out the price cut across the product portfolio ranging from 2% going up to 5% with the maximum reduction being Rs 4500.
The government had reduced excise duty on cars, commercial vehicles, sports utility vehicles (SUVs), motorcycles and scooters for the period up to 30 June 2014 in the in the Interim Budget for 2014-15 announced on Monday, 17 February 2014. The excise duty on small cars, two-wheelers and commercial vehicles has been reduced to 8% from 12%.
Hero MotoCorp's total two-wheeler sales rose 0.61% to 561,253 units in January 2014 over January 2013.
Hero MotoCorp's consolidated net profit rose 7.5% to Rs 524.66 crore on 11.3% growth in net sales to Rs 6845.91 crore in Q3 December 2013 over Q3 December 2012.
Hero MotoCorp is the world's largest two-wheeler manufacturer in terms of production capacity.
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