Views on Hero Motocorp 2QFY2016 Results: Angel Broking

Views of Mr. Bharat Gianani (Sr. Research Analyst - Automobile, Angel Broking) on Hero Motocorp 2QFY2016 Results:

"Hero Motocorp 2QFY2016 results were ahead of estimates as the company springed a positive surprise on the operating front. Hero managed to improve the margins despite volume declines (volumes were down 7%) and posted a record five year highest operating margin of 15.8%. Subdued commodity prices coupled with cost control initiatives helped Hero to improve margins steeply by 230 bp yoy and better our estimates of 14.7%. Strong operating profits led to the company reporting a robust profit of INR 772 cr which beat our expectations of INR 725 cr. We currently have NEUTRAL rating on the stock but would review our estimates post interaction with the management."

Shares of HERO MOTOCORP LTD. was last trading in BSE at Rs.2605.05 as compared to the previous close of Rs. 2613.55. The total number of shares traded during the day was 28467 in over 2768 trades.

The stock hit an intraday high of Rs. 2625 and intraday low of 2589.05. The net turnover during the day was Rs. 74102267.

Source : Equity Bulls

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