Shares of Hero MotoCorp jumped 4.6 per cent to Rs 3,066 per share on the BSE in Tuesday's intra-day trade after the two-wheeler (2W) major said that it received over 25,000 bookings for Harley Davidson X440 since opening the bookings on July 4, 2023.
So far this calendar year, the stock of this 2W manufacturer has surged 13 per cent, as against 8.4 per cent rise in the S&P BSE Sensex. In the past one month, however, shares have declined 1.8 per cent.
In an exchange filing, the company said that it would start production of the Harley Davidson X440 in September 2023 and commence deliveries from October onwards.
"We are delighted with the customer response to Harley-Davidson X440. What is even more heartening is that the majority of our bookings are coming from the top end model, clearly indicating that customers are willing to pay a higher price for the right brand and right model. This is just the beginning of our journey to win in the premium segment," said Niranjan Gupta, Chief Executive Officer (CEO), Hero MotoCorp.
The introductory ex-showroom prices were revised and the revised prices for Denim, Vivid and S variants will be Rs 2.39 lakh, Rs 2.59 lakh, and Rs 2.79 lakh, respectively.
Earlier, shares of Hero MotoCorp had hit a 52-week low of Rs 2,246 apiece on August 1, 2023 as reports of raids conducted by Enforcement Directorate (ED) against Executive Chairman Pawan Munjal surfaced, as part of a money laundering probe.
The automobile company, later, said that they were 'extending full cooperation' to the ED.
That apart, the company is scheduled to announce the April-June quarter results for fiscal year 2023-24 (Q1FY24) on Thursday, August 10.
Analysts at Axis Securities expect the 2W major to clock 7.6 per cent quarter-on-quarter (QoQ) revenue growth to Rs 8,941 crore in Q1FY24, led by higher average selling price.
Earnings before interest, tax, depreciation, amortisation (Ebitda), too, is expected to rise 7 per cent QoQ, led by better product mix, which will be partially offset by higher sales and promotion expenses.
"We expect Ebitda margins to improve 170 bps YoY. However, they are likely to see a minor decline on a sequential basis due to higher other expenses on new launches and marginal rise in input costs," the brokerage firm added in their Q1 preview note.