Shares of Hero MotoCorp (HMCL) surged 4% to Rs 2,911.65 on the BSE in intraday trade on Friday after the market leader reported a 31.1% month-on-month growth in May sales to 519,474 units for 2023. The company reported a 7% increase compared to the same period in May 2022, when it sold 486,704 units.

Shares of the two-wheeler company were trading near its 52-week high of Rs 2,939.35 hit on August 18, 2022. Over the past month, the stock has gained 16%, compared with a 2.1% gain for the S&P BSE index.

According to ICICI Securities, sales in the two-wheeler space aligned with their expectations, tracking healthy retail sales. HMCL was surprisingly positive, with double-digit growth and hitting new highs recently.

HMCL expected the momentum to continue in the coming months, driven by a pick-up in customer sentiment, forecasts of a normal monsoon and a range of new product launches in the premium segment.

In line with its global business expansion plans, the company has announced Motosport SA as its partner in Costa Rica – an important market in Central America. The company said that as the exclusive distributor for Hero MotoCorp sales and service, Motosport SA would play a key role in the rapid expansion of Hero’s network in Costa Rica.

Meanwhile, in the March quarter earnings call, FY24 industry revenues posted double-digit 2W growth on the back of macroeconomic improvement and pent-up/replacement demand; Growth continues through May, which is usually the peak wedding season.