Hero MotoCorp’s shares plunged more than 7% on Tuesday after reports that the company’s IT department uncovered certain false expense reports.
Shares fell 7.08% on the BSE to £2,208.35 a share.
On Tuesday, BSE asked the company for clarification, citing reports that the IT department found false expense reports of 1,000 crore from Hero MotoCorp.
“The allegations made in the press release are not supported by any document served to us or our internal records. We therefore categorically reject the speculative press reports,” the company told the stock exchange.
“We want to clarify that officials from the Income Tax Department have visited our offices over the past week,” the company said in a filing with the stock exchange.
Ashwin Patil, senior research analyst at LKP Securities, said that despite the decline, the stock doesn’t look very attractive over the long term, mainly due to pressure on its volumes and a dovish outlook amid increases in fuel costs, among other factors.
“However, the stock’s knee-jerk reaction shown today could lead to some rebound tomorrow, provided management provides satisfactory clarification…” he said.