By Malvika Gurung
Investing.com -- Shares of the country’s largest two-wheeler manufacturer Hero MotoCorp (NS: HROM ) were trading 3.4% higher at Rs 2,800.05 apiece after surging over 3.5% in early trade on Monday.
The stock uptick came after the auto major announced that it will raise the prices of its motorcycles and scooters by up to Rs 1,500, starting Dec 1, 2022.
The company said it will make an upward revision in the ex-showroom prices of its two-wheelers from Dec 1, with the price hike varying across specific models and markets.
The price rise has been attributed to the overall inflationary costs. However, the company has stated that it will continue providing innovative financing solutions to mitigate the impact of the hike on customers.
The CFO of Hero MotoCorp, Niranjan Gupta said that the company has also put in place accelerated savings programs, which will help it offset any further cost impact, and drive improvement in margins.
The economic indicators point towards favourable demand growth going ahead, expecting the industry volumes to pick up in the upcoming quarters, he added.
This is the fourth hike undertaken by the company in the ongoing financial year, with subsequent price hikes put into place in July, April and September 2022.
According to InvestingPro data, a total of 42 analysts covering the auto stock have an average target price of Rs 2,901/share on it, at a 17.5% upside.
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