Hero MotoCorp shares end 5 of last 6 months in the red, down 43% from peak. What should investors do?
Shares of
HEROMOTOCO
toCorp, one of the world's largest two-wheeler manufacturers, ended Tuesday's session, March 18, higher, gaining 2% to ₹3,564 apiece, which came as a relief for investors after the stock finished the last four trading days in the red.
However, despite today's pullback, the Nifty auto stock trades at multi-month lows. In the previous trading session, the stock touched a 15-month low of ₹3,461 apiece. From its peak of ₹6,246 apiece, it is now down 43%, making it one of the worst performers in the Nifty 50 index.
What is weighing on Hero Moto stock price?
Concerns over a slowdown in two-wheeler (2W) sales, a drop in market share, rising competition in the 2W and premium segment, and weak demand for entry-level motorcycles are currently impacting the stock price of Hero MotoCorp, causing it to end five out of the last six months (including the current month) in the red.