Dolat Capital recommended accumulate rating on Hero Motocorp with a target price of Rs 4095 in its research report dated May 07, 2018.
Dolat Capital's research report on Hero Motocorp
HMCL posted good set of numbers with top line growth of 23% V/s our expectation of 19% YoY. Realizations improvement was ahead of our estimates. The EBITDA margin for the quarter were higher than our estimates by 30bps at 16%. The PAT was in-line with our estimates. The company is enhancing product profile in premium motorcycles and scooter segments to ensure further growth and to capture the preference shift happening across segment. With good monsoons on the card and strong presence in the rural market, HMCL can grow ahead of industry. With outperformance to the industry and strong return ratios, valuations can sustain / improve.
Outlook
We rollover valuation to FY20E EPS and maintain accumulate rating on the stock with a target price of ` 4,095.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.