Morgan Stanley Says Hero Motocorp Shares To Underperform Sensex Over 'Disappointing' Q3 Earnings
January 18, 2013 6:03 PM EST
* Morgan Stanley says Hero MotoCorp's shares will fall relative to India's benchmark index over the next 60
days on the back of "disappointing" Q3 earnings.
* India's largest motorcycle maker missed estimates for the fourth straight quarter as net profit fell 20.4 percent
on rising costs and falling sales that battered margins.
* The investment bank maintains its 'underweight' rating on the stock, while reducing its earnings estimates by 5 percent for
FY13, and 3 percent for FY14, saying that the decline in Hero's margins is more structural than cyclical.
* "Most of the miss came at the operating level and was attributed to lower gross margins of new launches (Maestro and
Ignitor) and increased sales promotion costs," Morgan Stanley said in the report.
* Hero MotoCorp has fallen 4.3 percent in 2013 as of Thursday's close, compared with a 2.8 percent rise in India's benchmark
index in the same period.
Most Popular Slideshows
- Flight MH17 Attack: Russians Claim 'Putin A Terrorist,' Memorial at Dutch Embassy Overflows [PHOTOS]
- Typhoon Rammasun Claims 18 Lives in China, Incurs $4.32B Losses (PHOTOS)
- Ellen DeGeneres Caught Cheating with Mutual Friend Before Portia de Rossi’s Rehab – Reports [PHOTOS]
- Malaysia Airlines MH17: Vital Black Boxes Finally Land in Hands of Malaysian Authorities, Rebels Announce Ceasefire (PHOTOS/VIDEOS)
Join the Conversation
- China Military PLA Drills Affect Flights, Hundreds Cancelled
- Malaysia Airlines MH17: EU Feared Won't Ever Enforce Sanctions on Russia; All Talk, No Force
- Health Canada Orders Labeling of Mechanically Tenderized Beef Meat
- Embattled Malaysia Airlines Could Run Out of Cash 2015; Diverts Plane Over Another War Zone After MH17 Crash
- Samsung Galaxy Note 4 Apps Leak Online, Five Fresh Features to Expect from the Android Smartphone
- Moto 360 Price Speculations, Key Features, Strategic Release Date, Design: A Watch That is More Than Just Time
- Windows Phone 8.1 Update Rollout: 20 Nokia Lumia Phones Eligible and 13 New Features to be Added
- Google Nexus 8 Release Date Soon Along with 2 More HTC Android Tablets – Reports
- Three New Moto G Successors Spotted in FCC Document Dubbed Moto G2, Moto M and More --Reports
- iPad Air 2 Release Date Will Skip IGZO Panel; To Rollout with Super-Slim iPad Mini Air
- Upcoming iPad Mini 3 Could be 30% Thinner and Likely be Called iPad Mini Air; Apple Q3 Results Show 9% Decrease in iPad Sales