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

Importing Iron Ore

REUTERS SHOWCASE

Diesel Deregulation

Diesel Deregulation

India to decide on diesel deregulation after state polls - govt source.  Full Article 

Drug Approval

Drug Approval

Epirus, Ranbaxy win India approval for arthritis drug copy.  Full Article 

Rajan Speaks

Rajan Speaks

RBI chief Rajan says limiting reliance on foreign debt.  Full Article 

Debt & Equity Deal

Debt & Equity Deal

KKR to lend $175 million to GMR Infrastructure - source.  Full Article 

Preparing for IPO

Preparing for IPO

Alibaba boosts IPO as demand strengthens.  Full Article 

India-Vietnam Ties

India-Vietnam Ties

India tightens Vietnam defence, oil ties ahead of China Xi's visit.  Full Article 

Reuters India Mobile

Reuters India Mobile

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