Please refer to important disclosures at the end of this report
Hero MotoCorp Ltd. [HMCL] (Formerly Hero Honda Motors Ltd.) is the world's
largest manufacturer of two - wheelers, based in India. The compan
manufactures and sells motorized two wheelers up to 350 cubic centimeters (cc)
engine capacity, spare parts and related services. Company holds more than
50% market share in the overall 2W industry which will also benefit the compan
e believe that HMCL volumes are expected to see further growth this
year owing to the improved consumer sentiment. HMCL is expected to emerge as
a strong beneficiary of the recovery in the rural economy as it has a strong
presence in the rural region. Company indicated some cost pressure going
ahead as commodity prices have started to move up. However, overall
profitability is expected to increase over higher sales volumes. HMCL expects
better performance of its 150cc segment going ahead due to more launches in
this category. In the 100cc market, company has achieved 68% market share
which is also a positive sign for the company moving forward. The Company is
virtually debt free. Company has reported a health return on equity (ROE) o
38.68% for the last 3 years and has been maintaining a healthy dividend payout
of 51.59% (Div. Yield: 2.17%). Hence Buy.
CMP `3,309
Stock Info
Beta 1.0
Bloomberg Code
Shareholding Pattern (%)
Promoters 34.6
MF / Banks / Indian Fls 15.4
FII / NRIs / OCBs 42.8
Indian Public / Others 7.2
Abs. (%) 3m 1yr 3yr
Sensex (8.1) 5.5 25.2
Hero MotoCorp (10.5) 27.1 56.0
52 Week High / Low 3740/2375
Avg. Daily Volume 33,099
Market Cap (
cr) 66,077
BSE Sensex 26,694
Nifty 8,247
Face Value (
Reuters Code HROM.BO
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Hero MotoCorp
Others |
December 9, 2016
Hero MotoCorp | Automobile
December 9, 2016
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
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Disclosure of Interest Statement Hero MotoCorp
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
: Reduce
-5% to -15%
< -15