Corporate Governance Issues are the things we don’t take lightly because of the past wealth destructions by world famous companies like Enron, Satyam, Kingfisher, DHFL, Yes Bank, etc.
The current Hero MotoCorp story is still developing & it’s better to limit the damage in such situations by taking a bitter pill of selling the allocation.
If market panics, it may end up into multiple lower circuits.
It’s still disheartening to see an ethical management like Hero being alleged to such wrongdoings.
While my heart says there’s no actual tax evasion (It’s a usual drill by IT departments to bully assesses), my mind says better safe than sorry.
I would be keenly waiting to read the final order from the ED / IT Department & Court.
Conversely, Hero MotoCorp, if they’ve booked ‘bogus’ expense to the tune of ₹1,000 crore; it means actual profits should be increased by ₹1,000 crores, which virtually is a good thing for shareholders as it improves the valuations significantly.
Nevertheless, I don’t see it in good faith. Though it is what it is, if that is the case.
Company is genuinely selling quality products.
World’s number 1 Two-wheeler manufacturer.
The books are apparently not cooked up.
Regular in payment of dividends.
The situation is tricky. Time will only tell what’s the final outcome of this melodrama. This is one of those business which is close to my heart.
