Hero MotoCorp Falls To Two-Month Low Despite June Quarter Profit Rise

Shares of Hero MotoCorp fell to their lowest level since June 4 on Wednesday, even as its first-quarter results came in line with analysts' estimates.

The company's net profit rose 36% year-on-year to Rs 1,123 crore in the quarter ended June 2027, compared with Bloomberg's consensus estimate of Rs 1,157 crore.

• Revenue up 16% at Rs 10,144 crore (Bloomberg estimate: Rs 10,432 crore)

• Ebitda up 21% at Rs 1,460 crore (Bloomberg estimate: Rs 1,541 crore)

• Ebitda margin up 60 basis points at 14.4% (Bloomberg estimate: 14.80%)

• Net profit up 36% at Rs 1,123 crore (Bloomberg estimate: Rs 1,157 crore)

In its post-earnings conference call, the company's management said that it expects some action on higher market share and scooter launches by the end of this fiscal year. It also stated that the EV scooter range expansion will continue this year.

Shares of the company fell as much as 4.9% intraday to Rs 4,991 apiece, the highest level since June 4, before paring losses to trade 3.4% lower at Rs 5,062.75 apiece as of 11:52 a.m. This compares to a flat NSE Nifty 50.

The stock has risen 22% on a year-to-date basis and 73.29% in the last 12 months. Total traded volume so far in the day stood at 2.83 times its 30-day average. The relative strength index was at 34.62.

Out of the 42 analysts tracking the company, 28 maintain a 'buy' rating, six recommend a 'hold,' and eight suggest a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 3%.