On the outlook, the company said the news
on the rapid development of Covid-19 vaccines is likely to enable a faster rebound of the global economy in the coming months. The slew of recent measures announced by the Government should also help accelerate recovery and aid core sectors to rebound fast, it said.
Analysts remain positive on the stock and see increased visibility for Hero MotoCorp
to deliver reasonable earnings growth (20 per cent CAGR over FY21-23E) led by market share gain and margin expansion.
Analysts at Dolat Capital expect the trends of relative strength in the rural economy, shift from shared to personal mobility, and down-trading; to be prominent in the near to medium term. In our view, Hero is best positioned to benefit from all of these trends as the company has a strong product portfolio in entry and executive segments with more than 60 per cent shares, deep rural/semi-rural network reach (rural contributes to 50 per cent volume).
The recent Tie-up with Harley Davidson (HD) will also help to accelerate and enhance premium segment strategy in the longer run, the company to develop a range of products for Harley (HD), the brokerage firm said.