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

Public Health

REUTERS SHOWCASE

Airtel Profit Jumps

Airtel Profit Jumps

Bharti Q2 net profit more than doubles   Full Article 

Maruti Earnings

Maruti Earnings

Maruti Suzuki net profit up 29 percent, beats estimates.  Full Article 

ICICI Results

ICICI Results

ICICI Bank Q2 profit up 15 percent, beats estimates.  Full Article 

Cost Cutting

Cost Cutting

PM Narendra Modi boots officials out of the first class cabin  Full Article 

Market at Record

Market at Record

Sensex, Nifty hit record highs; reforms outpace hawkish Fed.  Full Article 

Moody's on India

Moody's on India

Moody's welcomes India's policy steps, but wants to see more.  Full Article 

End Of QE

End Of QE

U.S. Fed ends bond buying, exhibits confidence in U.S. recovery.  Full Article 

Samsung Results

Samsung Results

Smartphone woes drag Samsung Elec Q3 profit to more than 3-year low.  Full Article 

Refining Margins

Refining Margins

BPCL aims to double refining margins with refinery expansion.  Full Article 

Reuters India Mobile

Reuters India Mobile

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