Hero Honda on a high

Hero Honda has advanced 4.29% to Rs 696.25. Hero Honda said on Thursday it sold 280,515 units in February, up 12% from 250,695 units reported a year earlier(Source: Capital Markets). Hero Honda continues to show strong performances Q-o-Q in sales.

According to Reap Returns, estimated EPS for Hero Honda for FY 07 is likely to be app Rs 47 which will be less then its FY 06 EPS of Rs 48.64. Market seems to be betting on Hero Honda continuing the sales resurgence while improving its margins. The share is still a good long term buy with a target price of Rs 950.