Hero MotoCorp shares fell more than 3% in morning trade after UBS maintained a sell call.
UBS maintained a sell rating on Hero MotoCorp, with a target price of ₹3,350, representing a nearly 45% downside potential. “The stock is trading at c26x FY26E PE, which is more than 3SD higher than its five-year historical average. We maintain our Sell rating with PT of ₹3,350,” it said in a report.
Despite Hero MotoCorp’s stock rally after its Q1 FY25 earnings call, concerns regarding the company’s long-term retail performance remain. UBS said that, while the firm is likely to profit from increased wholesale volumes during the upcoming festive season, its reducing retail market share and growing inventory levels paint a less optimistic picture.
As of 9:32 am, Hero Motocorp shares were trading 3% down at Rs 5,768.00 on the NSE.
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