ETAutoMotilal Oswal has buy call on with a target price of Rs 4000. The current market price of Hero MotoCorp Ltd. is Rs 3452.05.
Hero MotoCorp Ltd., incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 68504.31 Crore) operating in Auto sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 9827.05 Crore, up 3.73 % from last quarter Sales of Rs 9473.32 Crore and up 38.91 % from last year same quarter Sales of Rs 7074.53 Crore Company reported net profit after tax of Rs 1127.85 Crore in latest quarter.
Investment Rationale
The stock trades at ~18.2x/16.1x FY22/FY23E EPS. We value HMCL at 18x Mar’23E EPS, factoring in improved volume visibility and lower risk of value outflow from HMCL’s areas of strength.
Promoter/FII Holdings
Promoters held 34.8 per cent stake in the company as of Dec 30, 2020, while FIIs held 35.9 per cent, DIIs 20 per cent and public and others 9.4 per cent.
Hero MotoCorp Ltd., incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 68504.31 Crore) operating in Auto sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 9827.05 Crore, up 3.73 % from last quarter Sales of Rs 9473.32 Crore and up 38.91 % from last year same quarter Sales of Rs 7074.53 Crore Company reported net profit after tax of Rs 1127.85 Crore in latest quarter.
Investment Rationale
The stock trades at ~18.2x/16.1x FY22/FY23E EPS. We value HMCL at 18x Mar’23E EPS, factoring in improved volume visibility and lower risk of value outflow from HMCL’s areas of strength.
Promoter/FII Holdings
Promoters held 34.8 per cent stake in the company as of Dec 30, 2020, while FIIs held 35.9 per cent, DIIs 20 per cent and public and others 9.4 per cent.
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