Automobiles
Valuation | |
|---|---|
| Market Cap | 1.15 LCr |
| Price/Earnings (Trailing) | 21.09 |
| Price/Sales (Trailing) | 2.52 |
| EV/EBITDA | 15.19 |
| Price/Free Cashflow | 32.44 |
| MarketCap/EBT | 17.26 |
| Enterprise Value | 1.15 LCr |
Fundamentals | |
|---|---|
| Revenue (TTM) | 45.53 kCr |
| Rev. Growth (Yr) | 21% |
| Earnings (TTM) | 5.47 kCr |
| Earnings Growth (Yr) | 15% |
Profitability | |
|---|---|
| Operating Margin | 15% |
| EBT Margin | 15% |
| Return on Equity | 25.87% |
| Return on Assets | 16.75% |
| Free Cashflow Yield | 3.08% |
Growth & Returns | |
|---|---|
| Price Change 1W | 2.6% |
| Price Change 1M | 6.6% |
| Price Change 6M | 12.8% |
| Price Change 1Y | 49.9% |
| 3Y Cumulative Return | 32.2% |
| 5Y Cumulative Return | 12.2% |
| 7Y Cumulative Return | 11.5% |
| 10Y Cumulative Return | 8.4% |
Cash Flow & Liquidity | |
|---|---|
| Cash Flow from Investing (TTM) | -1.7 kCr |
| Cash Flow from Operations (TTM) | 4.3 kCr |
| Cash Flow from Financing (TTM) | -2.82 kCr |
| Cash & Equivalents | 297.18 Cr |
| Free Cash Flow (TTM) | 3.44 kCr |
| Free Cash Flow/Share (TTM) | 172.02 |
Balance Sheet | |
|---|---|
| Total Assets | 32.66 kCr |
| Total Liabilities | 11.51 kCr |
| Shareholder Equity | 21.15 kCr |
| Current Assets | 18.55 kCr |
| Current Liabilities | 9.83 kCr |
| Net PPE | 5.13 kCr |
| Inventory | 2.63 kCr |
| Goodwill | 0.00 |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.01 |
| Debt/Equity | 0.02 |
| Interest Coverage | 85.98 |
| Interest/Cashflow Ops | 60.31 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend/Share (TTM) | 175 |
| Dividend Yield | 3.05% |
| Shares Dilution (1Y) | 0.00% |
| Shares Dilution (3Y) | 0.10% |
Balance Sheet: Strong Balance Sheet.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Dividend: Dividend paying stock. Dividend yield of 3.05%.
Past Returns: Outperforming stock! In past three years, the stock has provided 32.2% return compared to 13.4% by NIFTY 50.
Profitability: Recent profitability of 12% is a good sign.
Smart Money: Smart money has been increasing their position in the stock.
Momentum: Stock price has a strong positive momentum. Stock is up 6.6% in last 30 days.
Size: It is among the top 200 market size companies of india.
No major cons observed.
Balance Sheet: Strong Balance Sheet.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Dividend: Dividend paying stock. Dividend yield of 3.05%.
Past Returns: Outperforming stock! In past three years, the stock has provided 32.2% return compared to 13.4% by NIFTY 50.
Profitability: Recent profitability of 12% is a good sign.
Smart Money: Smart money has been increasing their position in the stock.
Momentum: Stock price has a strong positive momentum. Stock is up 6.6% in last 30 days.
Size: It is among the top 200 market size companies of india.
No major cons observed.
Investor Care | |
|---|---|
| Dividend Yield | 3.05% |
| Dividend/Share (TTM) | 175 |
| Shares Dilution (1Y) | 0.00% |
| Earnings/Share (TTM) | 272.11 |
Financial Health | |
|---|---|
| Current Ratio | 1.89 |
| Debt/Equity | 0.02 |
Technical Indicators | |
|---|---|
| RSI (14d) | 48.55 |
| RSI (5d) | 64.54 |
| RSI (21d) | 60.96 |
| MACD Signal | Buy |
| Stochastic Oscillator Signal | Hold |
| SharesGuru Signal | Buy |
| RSI Signal | Hold |
| RSI5 Signal | Hold |
| RSI21 Signal | Hold |
| SMA 5 Signal | Buy |
| SMA 10 Signal |
Updated May 4, 2025
Hero MotoCorp's market share has fallen to a decade-low of 26.9%, amid intensified competition and shifting consumer preferences.
The company has faced significant controversies that could affect its reputation and financial performance, leading to a decrease in stakeholder confidence.
Hero MotoCorp's stock is currently trading 0.29% lower, with an 8.01% yearly decline and ongoing operational challenges.
Summary of Hero MotoCorp's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Hero MotoCorp's management provided a positive outlook for the company, sharing insights on economic growth, market trends, and robust financial performance. The company reported dispatches of 6.1 million units in the calendar year 2025, marking its 25th consecutive year as the world's largest motorcycle and scooter manufacturer. The Indian economy is projected to grow at 7.3% for 2026, supported by government initiatives, which is expected to further bolster demand in the two-wheeler industry, especially with retail growth of 21% year-on-year in January 2026.
The financial highlights for Q3 FY'26 include record revenue of INR 12,328 crores (up 21% YoY), EBITDA of INR 1,810 crores (up 23% YoY), and PAT of INR 1,349 crores (up 12% YoY) with a normalized PAT of INR 1,489 crores (up 20% YoY). The company's EBITDA margin improved to 14.7%, with a focus on higher average selling prices (ASP) which rose 4.2% YoY.
Management emphasized strategic growth initiatives in five key areas: scooters, premium motorcycles, global markets, EVs, and parts/accessories, where there exists considerable room for market share growth. With a strong customer response to new product launches and a robust supply chain strategy, Hero MotoCorp aims to maintain agility amid potential future disruptions.
Looking ahead, management anticipates the two-wheeler industry to grow by double digits in the current quarter and expects to outpace industry growth driven by their extensive product offerings and strategic marketing initiatives. They also expect growth to be broad-based across segments, including entry-level motorcycles and EVs due to increased interest from first-time buyers.
Understand Hero MotoCorp ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| BAHADUR CHAND INVESTMENTS PVT LTD | 20.01% |
| PAWAN MUNJAL, RENU MUNJAL AND SUMAN KANT MUNJAL (ON BEHALF OF BMOP, PARTNERSHIP FIRM) | 13.96% |
| KOTAK ESG EXCLUSIONARY STRATEGY FUND | 4% |
| ICICI PRUDENTIAL VALUE FUND | 2.65% |
| NPS TRUST- A/C HDFC PENSION FUND MANAGEMENT LIMITED | 2.48% |
| WGI EMERGING MARKETS FUND, LLC | 2% |
Detailed comparison of Hero MotoCorp against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| M&M | Mahindra & Mahindra | 4.34 LCr | 1.89 LCr | -1.50% | +25.70% | 24.79 | 2.29 | - | - |
| BAJAJ-AUTO | Bajaj Auto | 2.82 LCr | 59.63 kCr |
Comprehensive comparison against sector averages
HEROMOTOCO metrics compared to Automobiles
| Category | HEROMOTOCO | Automobiles |
|---|---|---|
| PE | 21.09 | 13.71 |
| PS | 2.52 | 2.01 |
| Growth | 9.7 % | 0.9 % |
Hero MotoCorp is a prominent player in the 2/3 wheelers industry, trading under the stock ticker HEROMOTOCO.
With a market capitalization of Rs. 78,234 Crores, the company is engaged in the manufacture and sale of motorized two-wheelers across various regions including India, Asia, Central and Latin America, Africa, and the Middle East. Hero MotoCorp offers a diverse range of products such as motorcycles, scooters, and electric scooters, alongside engines, parts, and accessories, as well as related services.
Founded in 1984 and originally known as Hero Honda Motors Ltd., the company rebranded to Hero MotoCorp Limited in July 2011 and is headquartered in New Delhi, India.
In the last twelve months, Hero MotoCorp reported a revenue of Rs. 41,517.5 Crores, showcasing a revenue growth of 32.9% over the past three years. The company also distributes dividends to its investors, providing a yield of 6.14% annually, returning Rs. 240 per share in the previous year. However, it's noteworthy that Hero MotoCorp has diluted its shareholders by 0.1% over the last three years.
This is an informational page just to provide a quick 'first look' at the stock. You must do your own deeper research. Know your risk appetite. Consult a SEBI-registered financial advisor before making any investment decisions.
| Buy |
| SMA 20 Signal | Buy |
| SMA 50 Signal | Buy |
| SMA 100 Signal | Buy |
HEROMOTOCO vs Automobiles (2021 - 2026)
High Scoring Large Cap stocks have outperformed low scoring stocks by 90% over last 4 years
Hero MotoCorp is expanding its international presence with the establishment of a subsidiary in Brazil, which could enhance growth prospects.
This information is AI-generated and may contain inaccuracies. Please verify from multiple sources.
Here are the major questions from the Q&A section of Hero MotoCorp's earnings call along with detailed answers given by the management:
Question: "What insights can you provide on growth between urban and rural markets, particularly in the entry segment, considering recent volume volatility?"
Answer: From a growth standpoint, both urban and rural areas are thriving due to GST benefits. Urban markets are advancing quicker due to improved income tax policies. However, rural markets peaked during the festive season, showing stronger demand than anticipated. We expect robust rural growth as wedding season approaches. The volume fluctuations in Q3 were partly due to earlier festives compared to last year, yet we foresee continued momentum into Q4.
Question: "What are your expectations for FY27 considering current growth trends?"
Answer: We anticipate the industry to maintain a double-digit growth trend into FY27, building upon the solid momentum observed in Q3 and Q4. The growth may moderate slightly in the second half of the year due to a high base effect from this year. Overall, we foresee growth in high single digits for the upcoming fiscal year.
Question: "Could you elaborate on the commodity price inflation impacts during Q3 and your pricing strategies for Q4?"
Answer: Commodity price increases affected margins by about 40-50 basis points in Q3. We have implemented a price hike of INR300 per vehicle from January to mitigate these rising costs. We're closely monitoring commodity prices and will adjust pricing as needed, given that market conditions remain favorable.
Question: "What is the progress on your electric two-wheeler offerings, especially in relation to competitors launching products under INR1 lakh?"
Answer: Our VIDA lineup includes competitively priced variants, including some under INR1 lakh. We have introduced innovative solutions like Battery-as-a-Service to enhance affordability. This diverse offering caters to various customer needs and is expected to strengthen our market position in the EV segment.
Question: "What updates can you provide on your exports, particularly regarding growth in specific geographies?"
Answer: Our exports have significantly increased, especially in Bangladesh and Colombia, where we've captured considerable market share. We're expanding into new regions, including Europe and various parts of Latin America and Africa, while also entering the Philippines. Our strategy focuses on strengthening our presence in high-growth international markets.
Question: "Given the recent strong performance, how do you view margin expansion and cost management moving forward?"
Answer: We believe that growth will provide overhead dilution, facilitating margin expansion. Although we'll continue to face commodity cost pressures, our LEAP savings initiatives and ongoing focus on improving operational efficiencies will help maintain margins. We are confident that pricing adjustments will be judicious and not negatively affect overall demand.
Question: "How is the Colombian subsidiary performing after the previous impairment loss, and are any additional investments required?"
Answer: The Colombian business has improved remarkably, achieving over 200% volume growth and becoming profitable this fiscal year. We've expanded our market share from 5% to 9%, and no additional investment is currently needed, as the business shows strong operational health.
These responses encapsulate the key discussions during the Q&A segment of Hero MotoCorp's earnings conference call.
| UTI NIFTY 200 MOMENTUM 30 INDEX FUND | 1.03% |
| HERO INVESTCORP PRIVATE LIMITED | 0.44% |
| PAWAN MUNJAL FAMILY TRUST (PAWAN MUNJAL & ANIESHA MUNJAL) | 0.1% |
| RENU MUNJAL | 0.06% |
| SUMAN KANT MUNJAL | 0.05% |
| RENUKA MUNJAL | 0.02% |
| PAWAN MUNJAL (AS A KARTA OF HUF) | 0.02% |
| ANIESHA MUNJAL | 0.02% |
| VASUDHA DINODIA | 0.02% |
| SUNIL KANT MUNJAL | 0.02% |
| PAWAN MUNJAL | 0.02% |
| ABHIMANYU MUNJAL | 0.01% |
| RAHUL MUNJAL | 0.01% |
| SUMAN KANT MUNJAL (AS A KARTA OF HUF) | 0.01% |
Distribution across major stakeholders
Distribution across major institutional holders
| +7.30% |
| +20.00% |
| 31.72 |
| 4.73 |
| - |
| - |
| EICHERMOT | Eicher Motors | 2.2 LCr | 24.08 kCr | +14.80% | +60.50% | 40.99 | 9.12 | - | - |
| TVSMOTOR | TVS Motor Co. | 1.87 LCr | 52.51 kCr | +10.80% | +66.60% | 64.53 | 3.56 | - | - |
| ESCORTS | Escorts Kubota | 40.31 kCr | 11.59 kCr | +2.90% | +22.50% | 16.57 | 3.48 | - | - |
| ATULAUTO | Atul Auto | 1.33 kCr | 796.63 Cr | +22.80% | +2.40% | 39.81 | 1.66 | - | - |
High Scoring Large Cap stocks have outperformed low scoring stocks by 90% over last 4 years
| 2.8% |
| 10,879 |
| 10,584 |
| 8,541 |
| 8,750 |
| 8,978 |
| 9,171 |
| Profit Before exceptional items and Tax | 1.7% | 1,906 | 1,875 | 1,497 | 1,494 | 1,589 | 1,550 |
| Exceptional items before tax | - | -119 | 0 | 0 | 0 | 0 | 0 |
| Total profit before tax | -4.7% | 1,787 | 1,875 | 1,497 | 1,494 | 1,589 | 1,550 |
| Current tax | -14.7% | 383 | 449 | 339 | 370 | 364 | 370 |
| Deferred tax | 434% | 34 | 7.18 | 82 | 26 | 25 | 28 |
| Total tax | -8.6% | 417 | 456 | 420 | 396 | 389 | 398 |
| Total profit (loss) for period | -3.5% | 1,275 | 1,321 | 1,706 | 1,169 | 1,108 | 1,066 |
| Other comp. income net of taxes | -165.5% | -12.75 | 22 | -11.52 | -18 | 6.47 | -5.69 |
| Total Comprehensive Income | -6% | 1,262 | 1,343 | 1,694 | 1,151 | 1,115 | 1,061 |
| Earnings Per Share, Basic | -3.2% | 63.36 | 65.41 | 85.26 | 58.08 | 55.38 | 53.19 |
| Earnings Per Share, Diluted | -3.2% | 63.3 | 65.34 | 85.17 | 58.01 | 55.31 | 53.08 |
| 8% |
| 2,595 |
| 2,402 |
| 2,190 |
| 1,935 |
| 1,899 |
| 1,842 |
| Finance costs | 11.8% | 20 | 18 | 20 | 26 | 22 | 22 |
| Depreciation and Amortization | 9.2% | 776 | 711 | 657 | 650 | 677 | 818 |
| Other expenses | 19.7% | 5,225 | 4,367 | 3,771 | 3,115 | 3,120 | 3,339 |
| Total Expenses | 8.4% | 35,684 | 32,930 | 30,496 | 26,552 | 27,480 | 25,718 |
| Profit Before exceptional items and Tax | 13.1% | 6,128 | 5,418 | 3,875 | 3,250 | 3,900 | 3,896 |
| Exceptional items before tax | 99.4% | 0 | -159.99 | 0 | 0 | 0 | 677 |
| Total profit before tax | 16.5% | 6,128 | 5,258 | 3,875 | 3,250 | 3,900 | 4,574 |
| Current tax | 14.4% | 1,443 | 1,261 | 942 | 798 | 925 | 1,084 |
| Deferred tax | 164.3% | 75 | 29 | 22 | -20.8 | 11 | -143.68 |
| Total tax | 17.7% | 1,518 | 1,290 | 964 | 777 | 936 | 940 |
| Total profit (loss) for period | 16.2% | 4,610 | 3,968 | 2,911 | 2,473 | 2,964 | 3,633 |
| Other comp. income net of taxes | 44.2% | -12.03 | -22.35 | -9.37 | -5.44 | -21.06 | -31.78 |
| Total Comprehensive Income | 16.5% | 4,598 | 3,946 | 2,901 | 2,468 | 2,943 | 3,601 |
| Earnings Per Share, Basic | 16.2% | 230.53 | 198.53 | 145.66 | 123.78 | 148.39 | 181.91 |
| Earnings Per Share, Diluted | 16.3% | 230.25 | 198.18 | 145.52 | 123.74 | 148.37 | 181.91 |
| -1.8% |
| 4,860 |
| 4,949 |
| 4,907 |
| 4,934 |
| 4,771 |
| 4,868 |
| Capital work-in-progress | 76.4% | 188 | 107 | 133 | 121 | 181 | 129 |
| Investment property | 5.1% | 413 | 393 | 381 | 372 | 0 | 393 |
| Non-current investments | -16.3% | 6,945 | 8,299 | 8,339 | 8,812 | 8,394 | 7,372 |
| Loans, non-current | 0% | 25 | 25 | 22 | 21 | 19 | 20 |
| Total non-current financial assets | -16.1% | 7,019 | 8,370 | 8,490 | 9,022 | 8,619 | 7,598 |
| Total non-current assets | -9.5% | 13,648 | 15,083 | 15,118 | 15,776 | 15,187 | 14,226 |
| Total assets | 12.9% | 31,522 | 27,920 | 28,967 | 25,572 | 25,667 | 23,263 |
| Total non-current financial liabilities | -10.9% | 239 | 268 | 297 | 290 | 296 | 331 |
| Provisions, non-current | 21.5% | 594 | 489 | 423 | 317 | 225 | 198 |
| Total non-current liabilities | 9.1% | 1,382 | 1,267 | 1,210 | 1,041 | 963 | 934 |
| Total current financial liabilities | 32.9% | 7,803 | 5,872 | 7,371 | 5,805 | 6,079 | 4,890 |
| Provisions, current | 15.3% | 250 | 217 | 182 | 154 | 178 | 176 |
| Current tax liabilities | - | 271 | 0 | 0 | - | 0 | - |
| Total current liabilities | 33.1% | 9,110 | 6,847 | 8,232 | 6,544 | 6,812 | 5,624 |
| Total liabilities | 29.3% | 10,491 | 8,113 | 9,441 | 7,585 | 7,775 | 6,558 |
| Equity share capital | 0% | 40 | 40 | 40 | 40 | 40 | 40 |
| Total equity | 6.2% | 21,030 | 19,807 | 19,526 | 17,986 | 17,892 | 16,705 |
| Total equity and liabilities | 12.9% | 31,522 | 27,920 | 28,967 | 25,572 | 25,667 | 23,263 |
| 16.8% |
| 1,534 |
| 1,314 |
| 850 |
| 769 |
| - |
| - |
| Net Cashflows From Operating Activities | -14.8% | 4,182 | 4,907 | 2,579 | 2,020 | - | - |
| Cashflows used in obtaining control of subsidiaries | -81.8% | 124 | 677 | 962 | 150 | - | - |
| Proceeds from sales of PPE | 92.5% | 17 | 9.31 | 10 | 11 | - | - |
| Purchase of property, plant and equipment | 14.9% | 827 | 720 | 578 | 535 | - | - |
| Proceeds from sales of investment property | 7% | 48,918 | 45,713 | 45,341 | 42,428 | - | - |
| Purchase of investment property | 7.5% | 50,084 | 46,585 | 44,433 | 42,105 | - | - |
| Dividends received | 25.9% | 74 | 59 | 0.28 | 14 | - | - |
| Interest received | 49.2% | 441 | 296 | 256 | 186 | - | - |
| Other inflows (outflows) of cash | -101% | 0 | 101 | -102.83 | -1.23 | - | - |
| Net Cashflows From Investing Activities | 12% | -1,585.78 | -1,801.88 | -468.81 | -151.94 | - | - |
| Proceeds from issuing shares | -34.2% | 6.92 | 10 | 3.24 | 5.04 | - | - |
| Payments of lease liabilities | 32% | 34 | 26 | 26 | 20 | - | - |
| Dividends paid | 3.7% | 2,800 | 2,699 | 1,998 | 1,898 | - | - |
| Interest paid | 11.8% | 20 | 18 | 20 | 26 | - | - |
| Net Cashflows from Financing Activities | -4.2% | -2,846.93 | -2,733.13 | -2,040.58 | -1,938.87 | - | - |
| Net change in cash and cash eq. | -167.9% | -250.81 | 372 | 70 | -70.54 | - | - |
Appointment of Company Secretary / Compliance Officer • 05 Feb 2026 The Board of Directors at its meeting held today, viz. February 5, 2026 has appointed Mr. Prabhat Singh (Membership No. F8724) as the Company Secretary & Compliance Officer of the Company, .... |