Views on Hero Motocorp Ltd 4QFY2017 Results: Angel Broking

Views of Mr. Shrikant Akolkar (Research Analyst- Auto & Auto Ancillary, Angel Broking):

"Hero MotoCorp's 4QFY17 results were below the consensus expectations. Total volumes sold were at 16.22 lakhs vs. 17.21 lakhs in 4QFY16. Net sales dropped by 7.9% YoY to INR 6,915 crore. EBITDA was at INR 958 crore (13.8% margins) vs. INR 1,189 crore in 4QFY16 (15.8% margins). Net profit was at INR 718 crore against INR 833 crore in 4QFY16. The results indicate weak operating performance owing to the clearance of the BS-III inventory clearance in March-2017. The net realization during the quarter stood at INR 42,639 per vehicle vs. INR 43,192 in 3QFY17 and INR 43,603 in 4QFY16, indicating decline of 2.2% and 1.3% respectively on YoY and QoQ basis. We have an ACCUMULATE rating on the stock."

Shares of HERO MOTOCORP LTD. was last trading in BSE at Rs.3463.8 as compared to the previous close of Rs. 3322.4. The total number of shares traded during the day was 75549 in over 6079 trades.

The stock hit an intraday high of Rs. 3482.6 and intraday low of 3295.5. The net turnover during the day was Rs. 257541796.

Source : Equity Bulls

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