Hero MotoCorp Bulk Deal: BNP Paribas Acquires Stake Worth Rs 1,035 Crore
BNP Paribas Financial Markets on Monday acquired stake worth Rs 1,035.16 crore in Hero MotoCorp Ltd. through bulk deal on NSE. In addition, the mutual fund house also acquired shares in Max Healthcare Ltd. and IndusInd Bank Ltd.
Details of the Bulk Deal
The mutual fund house bought 0.97% stake in the company comprising of 19.52 lakh shares at Rs 5,302.91 per share, according to bulk deal data on the NSE.
Among other deals, BNP Paribas Financial Markets bought 0.85% stake in Max Healthcare worth Rs 921.64 crore. However, it also offloaded 0.03% stake in the company. It also acquired 1.37% stake in IndusInd Bank for Rs 771.71 crore and offloaded 7,969 shares in the company.
Hero MotoCorp’s Outlook for the Festive Season
Hero MotoCorp expects the current festive season to be record-breaking. The start to this year’s Navratri and festive season has been momentous for the entire auto industry, India’s largest two-wheeler maker’s Chief Business Officer of the India business unit Ashutosh Varma told NDTV Profit in an interaction.
"We have witnessed a very strong start to the festive season with a significant uptick in activity across our dealerships – about double the showroom traffic of last year. There is a massive surge in consumer sentiment, enquiries and bookings," said Varma.
Hero Moto’s outlook for Navratri and the rest of the festive season remains positive. Varma also told NDTV Profit that the strong traction began during Onam in Kerala and Ganesh Chaturthi in Maharashtra.
Rural Demand to Drive Growth
While the company is witnessing strong demand in both urban and rural markets, rural demand is expected to get even better as harvesting season concludes.
In the festive season of 2024, the company’s sales in the 32-day period rose by 13% to 15.98 lakh units.
Stock Performance
The business update was shared after market hours. The stock settled 0.52% lower at Rs 5,300.50 apiece on the NSE, compared to a 0.08% decline in the benchmark Nifty 50. The shares earlier during the day fell as much as 1.11% to Rs 5,269 per share.
Hero Moto shares have fallen 11.03% in the last 12 months and risen 27.40% year-to-date.
Out of 42 analysts tracking the company, 24 maintains a ‘buy’ rating, 13 recommend a ‘hold’ and five suggests ‘sell’, according to Bloomberg data. The average 12-month consensus price target of Rs 5,326.44 implies a upside of 0.5%.
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