Hero MotoCorp - Lower wholesale billings on account of high inventory in system - Way2Wealth

HeroMotoCorp continues to outperform with a YTD (FY) growth of 1.8% as against a degrowth visible among its peers.

However High base effect and high inventory buildup starts resulting into lower wholesale billings.

This can accentuate going forward as high base effect kicks in and as inventory levels are at 6 weeks as against the normal levels of 3-4 weeks.

Also, prefestive numbers are weak and even below its 3 month trailing runrate as festive season started in August last year as compared to September this year.

Source : Equity Bulls

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