Reason For This Bluechip Auto Stock To Hit 52-Week High Back-To-Back

Hero MotoCorp, one of the largest two-wheeler companies, hit a 52-week high back to back on June 8, 2023. The stock closed at Rs 3025.50 per share, up 2.30% from the previous day's close. This is the second time in a row that the stock has hit a 52-week high. The stock had hit a previous 52-week high of Rs 3,015.50 on June 2, 2023.

The company's strong sales performance and its plans to expand its electric two-wheeler portfolio are likely to have contributed to the rally in the stock price. Here are some of the reasons why Hero Moto Corp's stock price has been rising:

There are a few reasons for the recent rally in HMCL's stock. First, the company has been reporting strong sales numbers. In May 2023, HMCL sold 5.19 lakh units of motorcycles and scooters, a growth of 7% over the same month last year. The company sold more motorcycles and scooters in the month, compared to 4.85 lakh units in May 2022 as well.

Second, the company has been expanding its product portfolio. In April 2023, Hero MotoCorp launched its first electric scooter, the Hero Electric Photon. The company is planning to invest Rs 10,000 crore in electric two-wheelers over the next five years. The company plans to launch 10 new electric two-wheelers by 2026.

Third, the company has been investing in new technologies. In March 2023, HMCL announced a Rs 1,000 crore investment in new technologies, including artificial intelligence, machine learning, and big data.

Additionally, for the financial year ending on March 31, 2023, Hero Motocorp declared an equity dividend of 5000% which equates to Rs 100 per share. At the current share price of Rs 2,948.70 this results in a dividend yield of 3.39%. The company has a good dividend track report and has consistently declared dividends for the last 5 years.

The recent rally in Heromotor Corps stock is a positive sign for the company. It suggests that investors are bullish on the company's prospects. However, it is important to note that the stock market is volatile and the company's stock price could decline in the future.

However, after rallying for so long, it started dipping in Friday morning's trading session. It is currently trading at Rs 2,948.70 per share. The stock has given a return of 13.56% in the last one year and over three years, it has given a return of 28.64%.