Shares of Hero MotoCorp tumbled 6.5 per cent from their 52-week high level of Rs 3,243, touched in the intra-day trade on Tuesday, after reports said the Enforcement Directorate (ED) raided the residence of Hero MotoCorp Chairman and Managing Director Pawan Munjal after taking cognisance of a Directorate of Revenue Intelligence (DRI) case.
The stock hit an intra-day low of Rs 3,032.10 during the day, falling 5.3 per cent from the previous day’s close of Rs 3,203. At 1:45 PM, shares of the two-wheeler major were around 4 per cent down as against an unchanged benchmark S&P BSE Sensex.
According to a CNBC TV-18 report, a case has been registered against Munjal under the Prevention of Money Laundering Act (PMLA), 2002. The DRI had recently apprehended a close aide of Pawan Munjal in possession of undeclared foreign currency.
Business Standard couldn’t independently verify the report. Meanwhile, the company is yet to issue any statement on the report.
Meanwhile, the company is scheduled to announce its June quarter results on August 10, 2023.
Analysts at Sharekhan expect Hero Moto’s revenue to rise 5.7 per cent year-on-year/6.8 per cent quarter-on-quarter to Rs 8,873.6 crore in Q1FY24 on account of 6.5 per cent QoQ increase in volumes.
Ebitda margin is expected to expand by 30bps QoQ to 13.3 per cent due to operating leverage. Net profit, meanwhile, is projected to rise 38 per cent YoY/flat QoQ to Rs 859.7 crore.
“Volume grew by 6.5 per cent QoQ and declined by 2.3 per cent YoY. We expect the company’s revenue to grow by 7.5 per cent/8.6 per cent YoY/QoQ, led by higher volume and better average selling price (ASP). We expect Ebitda margin to expand by 40bps QoQ and 220bps YoY on the back of improved operating leverage and price hikes,” concurred those at Nirmal Bang.