Hold Hero Honda With Stop Loss Of Rs 1745

Hold Hero Honda With Stop Loss Of Rs 1745, Technical analyst Vijay Bhambwani has maintained ‘hold’ rating on Hero Honda Ltd stock with a stop loss of Rs 1745.

According to analyst, the investors can exit on rally to Rs 1850. Today, the stock of the company opened at Rs 1770 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 2094 and a low of Rs 1525 on BSE.

Current EPS & P/E ratio stood at 106.76 and 16.81 respectively.

Honda has reached a deal to end their 26-year old JV, Hero Honda, with the Hero Group by selling its complete equity stake in the country’s biggest two-wheeler manufacturer.

Honda Motor Co is likely to sell its complete 26% equity stake in Hero Honda to its associate Munjals-promoted Hero Group and would make $1.2 billion from the sale.

Hero and Honda have sanctioned to the royalty terms of approximately Rs 23 to 24 billion.

The transaction is virtually settled and is on target to meet up its December 31 target.

At present, Hero Honda pays approximately Rs 5 billion on an annual basis as royalty charges, which is about 2.2 to 3% of the overall sales.

Honda will deliver 3 new editions at 8% royalty and has decided to supply before the verdict of ending the joint venture.