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Hero Motors Shares Hit Record High Amid Market Crash
Hero Motors is a company whose shares recently began trading on the stock market.
Its shares first started trading below their IPO price.
The next day, the shares rose sharply and reached ₹116.74.
This happened even though major Indian stock-market indexes were falling.
Many Hero Motors shares were traded during the day.
One analyst said short-term investors should watch prices and trading activity carefully.
Another analyst said investors who made profits could sell part of their holdings.
Investors who continue holding the shares were advised to consider a ₹95 stop-loss.
Long-term investors were told to focus on the company’s business performance rather than its early price movements.
Hero Motors shares reached a record high of ₹116.74 on 24 September.
The stock surged as much as 18% after falling over 20% in the previous session.
Shares opened at ₹103, while the company’s market capitalization stood at ₹5,072.68 crore.
About 993.95 lakh Hero Motors shares changed hands during intraday trading on NSE.
Analysts advised monitoring volatility, with one recommending a ₹95 stop-loss for existing holders.
- Who
- Hero Motors and investors in its newly listed shares.
- What
- Hero Motors shares reached a record high despite a broader stock-market decline.
- Where
- On Indian stock exchanges, including NSE and BSE.
- When
- During trading on Thursday, 24 September, following the stock’s 23 September listing.
- Why
- The rally followed strong trading volume and buying interest after the stock’s subdued listing.
Cautious Fundamental View
Momentum-Oriented View
Short-term strategy
Cautious Fundamental View
Seema Srivastava said short-term investors should track price stabilization, order-book milestones and sustained volume because post-listing volatility remains high.
Momentum-Oriented View
Mahesh M Ojha said strong buying interest could support near-term momentum while the stock remains above ₹95.
Profit-taking
Cautious Fundamental View
Investors should look beyond the initial market enthusiasm and assess business execution, debt reduction, cash flow and returns on capital.
Momentum-Oriented View
Investors who have already booked gains may consider taking partial profits, while existing holders may continue holding with a strict ₹95 stop-loss.
Long-term assessment
Cautious Fundamental View
Long-term investors should judge whether capital expenditure produces sustainable EBITDA margins and performance comparable with listed auto-component peers.
Momentum-Oriented View
The stock’s recovery toward ₹100 and strong buying interest indicate positive near-term trading momentum, although a break below ₹95 would signal weakness.
Key facts
- Record high
- ₹116.74
- Intraday rise
- As much as 18% on 24 September
- Opening price
- ₹103, compared with a previous close of ₹98.40
- Market capitalization
- ₹5,072.68 crore as of 10:15 a.m.
- Intraday volume
- Approximately 993.95 lakh shares on NSE
- IPO size
- ₹1,000 crore, including a ₹600 crore fresh issue and ₹400 crore OFS
- Suggested stop-loss
- ₹95 for investors continuing to hold the stock
Quotes
Seema Srivastava
Senior Research Analyst at SMC Global Securities
“Conversely, long-term investors should prioritize fundamental business execution, monitoring how effectively capital expenditure translates into sustainable EBITDA margins, debt reduction, robust free cash flow generation, and return on capital employed compared to listed auto-component peers, looking well beyond the initial brand association.”
livemint.com
“Sustaining above ₹95 could keep the near-term momentum positive, whereas a break below this level may indicate weakness and warrant caution.”
livemint.com
Sources
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