AgenciesHDFC Securities has buy call on Hero MotoCorp with a target price of Rs 2825. The current market price of Hero MotoCorp Ltd. is Rs 2347.3. Time period given by analyst is one year when Hero MotoCorp Ltd. price can reach defined target.
Hero MotoCorp Ltd., incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 46696.05 Crore) operating in Auto sector.
Hero MotoCorp Ltd. key Products/Revenue Segments include Motorised Two Wheelers Upto 350cc Engine Capacity, Spares (Two Wheelers), Other Operating Revenue, Sale of services and Duty Drawback for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 8133.30 Crore, down -6.48 % from last quarter Total Income of Rs 8696.80 Crore and down -18.93 % from last year same quarter Total Income of Rs 10032.61 Crore. Company reported net profit after tax of Rs 684.49 Crore in latest quarter.
Investment Rationale
The stock is attractively valued at 11.8x FY24e EPS. Our TP of INR2,825 /sh is based on SOTP valuation of (a) core valued at 14x FY24e EPS; (b) investments including its stake in Ather at book. Market share revival in domestic motorcycles and ramp-up in exports are likely to be key upside triggers for the stock. Risks: EV transition in motorcycles and sustained cost pressure.
Promoter/FII Holdings
Promoters held 34.75 per cent stake in the company as of 31-Mar-2022, while FIIs owned 43.02 per cent, DIIs 10.44 per cent.
Hero MotoCorp Ltd., incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 46696.05 Crore) operating in Auto sector.
Hero MotoCorp Ltd. key Products/Revenue Segments include Motorised Two Wheelers Upto 350cc Engine Capacity, Spares (Two Wheelers), Other Operating Revenue, Sale of services and Duty Drawback for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 8133.30 Crore, down -6.48 % from last quarter Total Income of Rs 8696.80 Crore and down -18.93 % from last year same quarter Total Income of Rs 10032.61 Crore. Company reported net profit after tax of Rs 684.49 Crore in latest quarter.
Investment Rationale
The stock is attractively valued at 11.8x FY24e EPS. Our TP of INR2,825 /sh is based on SOTP valuation of (a) core valued at 14x FY24e EPS; (b) investments including its stake in Ather at book. Market share revival in domestic motorcycles and ramp-up in exports are likely to be key upside triggers for the stock. Risks: EV transition in motorcycles and sustained cost pressure.
Promoter/FII Holdings
Promoters held 34.75 per cent stake in the company as of 31-Mar-2022, while FIIs owned 43.02 per cent, DIIs 10.44 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
Pick the best companies to invest
BECOME AN ETPRIME MEMBERRead More News on
(What's moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)
...moreDownload The Economic Times News App to get Daily Market Updates & Live Business News.
Pick the best stocks for yourself
Powered by