JP Morgan cuts ratings on Hero Honda
Following the disappointing results posted by the world's largest producer for two-wheelers, Hero Honda, JPMorgan has announced a cut in its share price target for the company to 1,845 rupees by next March from 1,915 rupees.
The brokerage house said in a note that keeping in mind the increasing competition and the moderating margins in the two-wheelers business, it is reducing its weight on the stock of Hero Honda. It is to be mentioned here that the company posted a 1.6 per cent fall in quarterly net profit, its first decline in 11 quarters.
However, analysts are supporting the fact that the company will remain under pressure even in the current quarter, as far as its margins are concerned. The rising cost of raw materials and supply issues have been a problem for several automobile players in the Indian market for the past many months.
In fact, while many of them expected the commodity prices to cool down with time, the rising prices have taken them by surprise. However, Hero Honda expects the road to be smooth for its operations in the country in the coming months.
New Zealand News
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