Back-to-back 52-week high: This blue-chip company aims to expand electric range wants premium push; do you own it?

The company intends to launch new entry-level models to appeal to a broader range of customers. 

On June 8, 2023, the shares of Hero MotoCorp Limited surged 2.30 per cent to trade at new 52-week high of Rs 3025.50 per share on BSE. The scrip witnessed an impressive spurt in volume.  

According to newly appointed CEO Niranjan Gupta, Hero MotoCorp is planning to extend its electric two-wheeler portfolio while updating its existing sales infrastructure to improve premium play as part of its future growth ambitions.  

Outlining the company's three mid-term aims, he stated that it would focus on strengthening its presence in the premium category, increasing the commuter segment and gaining leadership in the electric two-wheeler segment.  

In the electric two-wheeler market, the company intends to launch new entry-level models to appeal to a broader range of customers.  

On the sales front, Hero MotoCorp sold more than 5.19 lakh units of motorcycles and scooters in May 2023. The company has registered a growth of 7 per cent growth over the corresponding month of May 2022.   

The dividend yield on this stock is 3.38 per cent. The company has maintained a respectable dividend distribution of 75.0 per cent. The corporation announced favorable financial results for the fiscal year ended March 31, 2023.   

Hero Moto Corp, formerly known as "Hero Honda," was India's first motorbike manufacturer. In 1984, the company began as a technological collaboration with Honda of Japan. Hero once sold cycles under the brand name Hero Cycles.  

Honda group sold its 26 per cent ownership in the company to the Munjals (promoters) in 2011, effectively ending the JV. Following the dissolution of the JV, the company's name was changed to Hero Moto Corp.  

The stock has seen strong purchasing activity in the last year, with more than 15 per cent returns. In comparison, TVS Motor Company Ltd has offered more than 75 per cent returns in the last year, while Eicher Motors Ltd has given more than 35 per cent returns in the last year. 

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We can conclude that the shares of Hero MotoCorp fetched moderate returns in past 1 year. Investors must keep a close eye on this blue-chip automobile stock.