Hero MotoCorp to underperform Sensex - Morgan Stanley

Fri Jan 18, 2013 12:47pm IST

A worker cleans a bike inside a Hero MotoCorp showroom in Mumbai January 17, 2013. REUTERS/Danish Siddiqui/Files

A worker cleans a bike inside a Hero MotoCorp showroom in Mumbai January 17, 2013.

Credit: Reuters/Danish Siddiqui/Files

Related Topics

Stocks

   

Reuters Market Eye - Morgan Stanley says Hero MotoCorp's (HROM.NS) shares will fall relative to the Sensex over the next 60 days on the back of "disappointing" Q3 earnings.

India's largest motorcycle maker missed estimates for the fourth straight quarter as net profit fell 20.4 percent on rising costs and falling sales that battered margins.

The investment bank maintains its 'underweight' rating on the stock, while reducing its earnings estimates by 5 percent for FY13, and 3 percent for FY14, saying that the decline in Hero's margins is more structural than cyclical.

"Most of the miss came at the operating level and was attributed to lower gross margins of new launches (Maestro and Ignitor) and increased sales promotion costs," Morgan Stanley said in the report.

Hero MotoCorp has fallen 4.3 percent in 2013 as of Thursday's close, compared with a 2.8 percent rise in the Sensex in the same period.

(Reporting by Abhishek Vishnoi)

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Republic Day

Reuters Showcase

RK Laxman Dead

RK Laxman Dead

'Common Man' cartoonist RK Laxman dead at 93  Full Article 

Banking Revolution

Banking Revolution

India turns to corner shops, mobile phones for banking revolution.  Full Article 

Nuclear Group

Nuclear Group

China urges India to take steps to satisfy standards of NSG  Full Article 

Gold Market

Gold Market

Chinese gold demand holds up ahead of holiday, Indian buying weak  Full Article 

India-U.S. Relations

India-U.S. Relations

Column - U.S. and India should join to balance China's rise  Full Article 

Padma Bhushan

Padma Bhushan

India honours Bill Gates with civilian award  Full Article 

Fashionable Modi

Fashionable Modi

When Modi met Obama, his name was all over - his suit  Full Article 

New Greek PM

New Greek PM

Greek leftist Tsipras sworn in as PM to fight bailout terms  Full Article 

Australian Open

Australian Open

Venus fireworks illuminate Australia Day  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage