Honda Motor Company Stock Price

History of the Honda Motor Company:

The Honda Motor Company of Japan and the Hero Group, an Indian company, established a conglomerate as Hero Honda Motors Limited. The Hero Honda has earned the recognition of being the first establishment in India that produced motorcycles which didn't cause pollution in the mid-80s. This new set of bikes set a high standard for lower emission and fuel thrift. The company also came up with the "Fill It-Shut It-Forget It" campaign that arrested the fancy of bike riders in India. It is because of the promise of an increased mileage made through this particular campaign that Hero Honda sold millions of bikes. Hero Honda was the first company to start four-stroke bikes in India and set a benchmark for quality, fuel efficiency, and pollution control.

In the year 2010, Honda decided to come out of the joint venture. Hero Group bought the shares from Honda by the end of August 2011. Hero Motocorp chose to merge the investment wing of its parent company, Hero Investment Private Limited with the manufacturer of motorcycles in the year 2012. This decision was made after 18 months of splitting from Hero Honda.

Information About Honda Motor Company:

Based in India and formerly known as Hero Honda Motors Limited, Hero Motocorp Limited is the largest manufacturer of two-wheelers in the world. In the year 2001, this business entity achieved the prestigious position of being the largest two-wheeler producer in India. It also became the World's No.1 two-wheeler company in the category of unit volume sales in a calendar year. This company uses world-class technology in producing fuel-efficient two-wheelers that do not pollute the environment.

Management of Company:

Mr. Pawan Munjal, Chairman, Managing Director, and CEO

His responsibilities include strategic planning and mapping the growth of the entire company. He pursued B-Tech in Mechanical Engineering and has played a significant role in adding technological and managerial perfection to the company's operations. He has been heading a few Committees entirely in CII. He is also an integral part of the ISB. He had also been the Chairman of the Asian PGA Tour Board of Directors. Under his able leadership, Hero Motocorp Limited unveiled the Hero Indian Sports Academy (HISA) as a joint venture with Laureus Foundation.

Ms.Shobana Kamineni, Non-Executive and Independent Director

She has been given the position of Additional Director in the year 2015. Mr. Kamineni is the Executive Vice Chairperson for the Apollo Hospital Enterprise Limited. She is also a member of the founding family of the group. She has received several prestigious awards and recognitions including the Honorary Doctorate Degree of Science by the prestigious Bryant University, USA. She has earned a reputation for her entrepreneurship and leadership skills.

Listing of Hero Motocorp in NSE, BSE, and Indices:

The stocks of Hero Motocorp Limited's are available for trading on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The codes for the same are mentioned below:

  1. BSE: 500182
  2. NSE: HEROMOTOCO
  3. ISIN: INE158A01026
  4. Sector: Auto- 2 and three wheelers

The Stock Trends of Hero Motocorp in 2017 and 2018:

In January 2018, the Stock Price of Hero Motocorp Limited began at Rs.3,790.15 in BSE while in NSE, it was at Rs.3,810.00. On the first day of January 2018, the Low Price was at Rs.3,755.30 at BSE and Rs.3,740.00 at NSE. The open price was at Rs.3,703.00 at NSE and BSE, and it was at Rs.3,686.05 on the last day of January 2018. The Last Price stood at Rs.3,691.60 at BSE and Rs.3,691.45 at NSE.

On the first day of February 2018, the Open Price of the share was reported at Rs.3,720.00 in BSE and Rs.3,695.15 at NSE. The Last Price on the first day of the month was Rs.3,732.95 at NSE and Rs.3,734.40 at BSE. The High Price on this day stood at Rs.3,743.95 at BSE and Rs.3,744.00 at NSE. At the month end, the Open Price of a share of this company was at Rs.3,525.00 at NSE and Rs.3,553.00 at BSE. The High Price on the last day of the month stood at Rs.3,613.00 at NSE and Rs.3,615.90 at BSE.

Recent Performance of Hero Motocorp:

In the last quarter, Hero Motocorp Limited net profit was equal to the predictions regarding sales and volume growth made by financial analysts. The net gain of the company increased by 4.3% to Rs.805.40 crore in the fourth quarter in December 2017. The revenues of the company rose by 15% to Rs.7,305.50 crore in comparison to Q3 in 2016. The earnings caused by the company before depreciation, interest, tax, and amortization increased by 7.2% on an annual basis to Rs.1,158 crore.

However, the operating margins shrunk marginally by ten essential points to 15.9% during the same period on various expenses including higher commodity costs. The company experienced high quarterly sales of 17.09 lakh units from 14.73 lakh units y-oy. The volume growth was recorded to be at 16%.

Market Capitalization of Hero Motocorp Limited:

As of early March 2018, the market capitalization of Hero Motocorp Limited is close to Rs.7,2,599.93.

Why Invest in Hero Motocorp Limited?

The Hero Motocorp Limited is the largest two-wheeler manufacturer in the world. In the last quarter, the net profit of the company was equivalent to the predictions made by the financial experts in the industry. The net gain of the company also inclined by 4.3%. The share prices have shown a significant increase in the last two years. In the future quarters, the prices are expected to rise even more steeply. Hence, it will be a good idea to invest in the stocks of Hero Motocorp Limited.

Stocks or Mutual Funds: Here is our recommendation

A lot of research and knowledge is required in stock market investments, and generally, they don't offer any tax benefits. Hence at mymoneykarma, we merely motivate our readers to invest in mutual funds. Investing in mutual funds doesn't require a lot of knowledge, and equity-linked mutual fund schemes also provide tax benefits. In addition to it, since mutual funds contain stocks from multiple companies, they help in building a diversified portfolio.

Note: The contents of this post/blog do not constitute any professional advice on a specific financial matter.

Indexes and Exchages

Bombay Stock Exchange (BSE)

The Bombay Stock Exchange, popularly called BSE, is Asia's first and oldest stock exchange. Located at Dalal Street in Mumbai, the BSE was formally established in 1875 by an influential stockbroker and businessman called Premchand Roychand. In the initial days, the BSE had its meetings under several Banyan trees in Mumbai before finding a permanent place, which is very appropriately named Dalal Street or Broker Street. After functioning as a floor trading exchange for more than a century, BSE ascended the digital ladder in 1995 by implementing a new screen-based automated trading platform with a capacity of 8 million orders in a day. In 2012, the BSE went global by becoming a Partner Exchange of the United Nations Sustainable Stock Exchange. Subsequently, BSE established India's first international exchange, called INX, in 2016.

National Stock Exchange (NSE)

NSE was set up in 1992 by a group of leading Indian financial institutions, following the Indian Government's directives. It aimed to bring transparency to the Indian capital market. It was India's first demutualized electronic exchange which operated on a completely automated screen-based electronic trading system, offering an easy trading facility to all Indian investors. NSE began its operations in the Wholesale Debt Market segment in 1994. NSE was the first company in India to offer a digital platform that connected the investor base of the entire country. NSE offers services in various segments, such as trading, equity derivatives, clearing and settlement services in equity, debt and currency derivatives, etc.

NIFTY Index

The NIFTY is NSE's flagship index that tracks the behavior of a portfolio of blue-chip companies that have the largest and most liquid Indian securities. It is owned as well as managed by IISL (India Index Services and Products Ltd), which is India's first specialized company to focus on an index as a core product. Nifty indexes 50 of the 1600 companies on the National Stock Exchange (NSE) and is thus popularly referred to as 'Nifty 50'. It captures approximately 65% of its float-adjusted market capitalization and is a true reflection of the Indian stock market. The Nifty 50 includes the major sectors of the Indian economy. It offers the exposure to the Indian market in one efficient portfolio. The Nifty index has been trading since April 1996. It is ideally suited for index funds, benchmarking and index-based derivatives.

SENSEX Index

Sensex is BSE's stock market index. It consists of 30 well-established and financially flourishing companies listed on BSE. It was established in 1986. These 30 component companies are known for being the largest and most actively traded stocks. They represent various industrial sectors of the Indian economy. Sensex is also known as BSE 30 and S&P BSE SENSEX. The word 'Sensex' is a portmanteau of the words 'Sensitive' and 'Index.' SENSEX is widely reported in domestic and international markets through print and electronic media. The indexing system is scientifically designed, based on globally accepted construction and review methodology. Since September 2003, S&P BSE Sensex is being determined on a free-float market capitalization methodology.