Shares of Hero Motors Limited saw a roller coaster ride on Monday, with the auto ancillary stock starting the trading session with fresh 52-week highs, only to crash to its lower circuit today. The auto components manufacturer surged nearly 55% since its weak listing on exchanges last week. The Hero Group stock listed at a discount of nearly 2.38% to its issue price of ₹84 per share.
The recent bullish momentum in Hero Motors shares indicates that the stock is seeing heightened investors’ interest as the focus is now shifting across the growing automotive technology and powertrain segments, its current valuation and profitability metrics.
Hero Motors share price jumps 50% since IPO listing
Hero Motors IPO was launched at an issue price of ₹84 per equity share. The IPO was listed on September 23 at ₹82 per equity share, which is 2.38% discount to its issue price.
Soon after its listing, the stock dipped to its 52-week low of ₹80.50 per share. However, the auto ancillary stock staged a sharp rebound after that and surged to its 52-week high of ₹98.51 per share.
The rally didn’t stop there as Hero Motors stock surged to its fresh 52-week high of ₹118.21 per share on BSE on September 24. After hitting back-to-back 52-week high, Hero Motors shares surged to fresh all-time highs of ₹141.85 per share on September 25.
Hero Motors share price today
The sharp rally hit another milestone when Hero Motors stock jumped to a fresh 52-week high on Monday, September 28, of ₹156.03 per share. Soon after hitting fresh 52-week high, the auto stock dipped to its lower circuit of ₹127.67 per share today. The stock was trading 4.46% lower at ₹133.42 per share on BSE with a market capitalisation of ₹6,063.78 crore at 12:56 pm on Monday.
About Hero Motors
Hero Motors has a strong position as an automotive technology player. The company enjoys dominance on supplying engineered powertrain solutions to global original equipment manufacturers (OEMs) across the US, Europe, India and ASEAN.
India’s two-wheeler industry has the potential to expand by 6-7% CAGR to 29-31 million units by FY31, Ravi Singh, Chief Research Officer at Master Capital Services, as quoted by Mint in its previous report. Additionally, the gears and transmission market is expected to grow at 6%-8% CAGR between CY25-CY31.
