Hero Motocorp's stock surged on Monday after the two wheeler major posted better-than-expected sales numbers in August.

What Happened: Hero Motocorp sold 5.12 lakh total units in the month of August, reflecting a 5% year-on-year growth. The domestic sales grew 4.08% from the previous year to 4.92 lakh. While the exports increased by 27% to 20,097 units. 

The company said the August sales were affected by supply shortages, which will be made up in September. 

The company sold 4.78 lakh motorcycles, a 5% increase while the scooter sales went down 6% to 34,145 units. 

The company had launched Hero Glamour 2024 model in August. It also started operations in the Philippines by joining hands with Terrafirma Motors Corporation. 

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VIDA, the company's electric vehicle brand showed upward sales trajectory with dispatches crossing

6,000 monthly units for the first time. Its retail market share has grown over 5% shows VAHAN data. 

Motilal Oswal said the sales figures were ahead of their expectations. The brokerage sees volumes to grow by 8% in FY25, which implies a run rate of 5.2 lakh units per month. The research firm kept its "buy" rating on the stock. 

Price Action: Shares of Hero Motocorp rose 3.18% to intraday high of ₹5,629.05

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