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Hero Honda shares surge 18 pct

December 20, 2010

Shares in Hero Honda gained 18 percent on Monday to close at 1981 rupees, ending as the top Sensex gainer, as Bank of America-Merrill Lynch raised its rating on the firm, with worries over the financial impact from Honda’s exit from their India motorcycle JV subsiding.

This was the best single-day gain in at least two years for the stock.

After market hours on Thursday, Hero Honda chief executive Pawan Munjal said Hero’s royalty payment to Honda would start declining from next year.

The shares are up around 6.5 percent since mid-October. Do you think this is the right time to enter this stock?

as Bank of America-Merrill Lynch
raised its rating on the top motorcycle maker to "buy" from
"neutral," with worries over the financial impact from Honda's
(7267.T) exit from their India motorcycle JV subsiding.

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