Pawan Munjal, chairman of Hero MotoCorp, listed in the stock market and two-wheeler segment giant, has an income tax raid. The Income Tax Department team runs a search operation at his Gurgaon office and home. Hero MotoCorp is the world’s largest two-wheeler manufacturing company.
On Wednesday, the Income Tax Department raided the premises of Hero MotoCorp Chairman and MD Pawan Munjal. It is being told that the search has been going on since morning at his residence and office in Gurgaon.
The income tax department suspects this.
There is an allegation against Munjal that he has shown bogus expenses in his accounts. The Income Tax Department has been conducting raids since morning regarding this. It is being told that some of the suspicious costs received by the IT team are also from in-house companies.
It is believed that this raid is going to continue even now. Apart from the house and office of Pawan Munjal, raids are also going on at the premises related to some other prominent officers of the company.
As soon as the news of the raid was received, there was a stir.
However, neither Hero MotoCorp nor the IT department has told anything about this yet. As soon as this news came to the fore, the shares of Hero MotoCorp also started falling. Hero MotoCorp’s shares traded at a profit on the BSE before the raids. As soon as it became known, the stock lost all its momentum. By 10:30 am, Hero MotoCorp’s stock had fallen up to 2 per cent.
Hero dominates the domestic two-wheeler market.
Right now Pawan Munjal is handling Hero MotoCorp. Under his leadership, the company is doing business in 40 countries across Asia, Africa, South America and Central America. Hero MotoCorp has eight manufacturing plants with global benchmarks.
Six are in India, while Colombia and Bangladesh have one each. Hero dominates the two-wheeler market in India. This company has more than 50 per cent share in the domestic motorcycle market.
This company does its business in more than 40 countries. Hero Motocorp is also present in countries like Asia, Africa, America. You can know from some figures how much Hero MotoCorp has in the Indian two-wheeler segment. Hero MotoCorp has 50 per cent of all two-wheelers sold in India.
Hero Moto stock down 2 per cent
Hero MotoCorp’s stock fell sharply after the news of the raid. The stock has fallen 2 per cent below Rs 2380. At the same time, there is pressure on the shares of other companies in the auto sector. Maruti, Bajaj Auto, TVS Motor have slipped up to 1.5 per cent.
Hero MotoCorp stock performance
Hero MotoCorp’s stock has fallen 1 per cent in the last week. Eleven per cent broke in a month. At the same time, this year has given a negative return of 4 per cent. Apart from this, the stock has fallen by 23 per cent till March 2022 as compared to March 2021.
Hero MotoCorp Earnings
According to the information released by the company, the total profit of Hero Motocorp (Hero Motocorp) has fallen 36.7% to Rs 686 crore in the October-December quarter. At the same time, precisely a year ago, Hero Motocorp’s profit was Rs 1084.47 in the same quarter.
In the December quarter, the company had earned Rs 7883 crore from operations. The company had an income of Rs 9776 crore in the same quarter of the last financial year. The company’s earnings declined by 19.4% in the December 2021 quarter.