Buy Hero MotoCorp: target of Rs 3496: Sharekhan

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Sharekhan's research report on Hero MotoCorp

HMCL continues to benefit from premiumisation of its products, its stronghold in the economy and executive motorcycle segments, and aggressive products offerings in the premium bike and scooters segments. Exports, electric vehicles, and partnership with Harley Davidson are the next key growth drivers for the company in the long term. The stock is attractively valued with P/E multiple of 15.3x and EV/EBITDA multiple of 8.8x its FY2023E estimates and is at a 15%-20% discount to its long-term average multiples. We recommend Buy on the stock.

Outlook

We reiterate our Buy rating on Hero MotoCorp Limited (HMCL) with a PT of Rs. 3,496, after holding a call with the company’s management. Interaction with the management indicates that structural growth traction in the two-wheeler (2W) industry remains intact.

For all recommendations report, click here

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