On Monday, BofA Securities adjusted its stance on Hero MotoCorp Ltd. (HMCL:IN), downgrading the stock from Buy to Neutral. The firm set a price target of INR 6,050.00 for Hero MotoCorp shares. This decision follows a notable increase in the company's stock price over recent months, which was influenced by the anticipation of a rural recovery and festive season cheer.
The BofA Securities analysis noted that despite the hustle in the company and at dealerships, with multiple new product launches and a strategy aimed at enhancing the distribution and brand, these efforts have not yet translated into market share gains. In fact, Hero MotoCorp's market share has continued to decline in the year-to-date for the fiscal year 2025.
One of the new models introduced by Hero MotoCorp, the Xtreme 125cc, has performed well in the market. However, supply constraints have limited its success, preventing it from compensating for the decline in other models and the company's significant exposure to the high entry segment. This situation has contributed to the analyst's decision to adjust the stock's rating and price target.
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