MARKET EYE-Hero MotoCorp to underperform Sensex - Morgan Stanley

Fri Jan 18, 2013 12:24pm IST

Related Topics

Stocks

   

* Morgan Stanley says Hero MotoCorp's shares will fall
relative to India's benchmark index 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 India's benchmark
index in the same period.

 (abhishek.vishnoi@thomsonreuters.com /;
abhishek.vishnoi.thomsonreuters.com@reuters.net)
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Waning Enthusiasm

Waning Enthusiasm

Markets' post-election enthusiasm lost on consumers.  Full Article 

Global Growth

Global Growth

IMF cuts outlook, warns of stagnation risk in rich nations  Full Article 

Monsoon Revives

Monsoon Revives

Monsoon revival keeps rain above average   Full Article 

Wipro Results

Wipro Results

Firm sees strong sales growth, eyes Europe deals   Full Article 

Scourge of Inflation

Scourge of Inflation

Markets' post-election enthusiasm lost on consumers  Full Article 

Just Not Enough

Just Not Enough

Amazon's smartphone fails to kindle a "Fire" among reviewers.  Full Article 

Rising Market Value

Rising Market Value

Facebook goes express to mega-cap status  Full Article 

Mining Roadblock

Mining Roadblock

Coal India's plans for 20 mines hit by land, environment delays  Full Article 

Power Jolt

Power Jolt

UAE's TAQA pulls out of India power plant deal with Jaiprakash  Full Article 

Reuters India Mobile

Reuters India Mobile

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