Prabhudas Lilladher recommended accumulate rating on Hero MotoCorp with a target price of Rs 2784 in its research report dated May 30, 2019.
Prabhudas Lilladher's research report on Hero Motocorp
Hero MotoCorp Analyst Meet shared medium to long-term vision for the Indian 2W market and HMCL's strategy. The management remains optimistic about long term 2W demand scenario and expects HMCL to be the key beneficiary of the same. The management has a 6 focus areas for HMCL to accelerate growth - 1) continuously growing in Entry/Deluxe segments 2) building on premium motorcycle portfolio 3) Increasing its scooter market share 4) scaling up international business 5) nurturing emerging segments like EVs and 6) leading sustainably. We expect near term growth challenges, however normal monsoons and pre buying ahead of BS VI is expected to boost demand from festival season.
Outlook
We maintain 'Accumulate' with a price target of Rs2,784 based on 16x Mar'21 EPS. Deterioration in demand post BS VI pre buying is a key risk to our call.
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.
Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.
Read More
