Automaker Hero Motocorp is expected to release its Q2FY20 numbers on Wednesday. The company's revenues are expected to be down about 18 percent.
Hero has underperformed all of its peers this quarter. Its volumes are down 21 percent in this quarter, while Bajaj Auto was down 12 percent and TVS Motor slid 19 percent. In that context and because of the rural slowdown Hero Motocorp has been the worst-affected two-wheeler manufacturer since over 60 percent of its sales comes from the rural market.
The realisations are expected to grow about 2.5 percent because of price hikes and a higher share of spare parts. However, the overall margins are expected to fall to 13.6 percent against 15.2 percent.
The stock is down 13 percent this year. It has underperformed its peers but it is still trading as per its historic valuations at about 17 times forwards.