Sharekhan has given Buy recommendation for Hero MotoCorp with a target price of Rs. 3210 in its research report issued on Aug 12, 2022
Sharekhan’s research report on Hero MotoCorp
Q1FY23 results were below expectations due to commodity headwinds and lower other incomes. Hero is expected to benefit from premiumisation of its products, stronghold in the economy, executive motorcycle segments, aggressive products offerings in premium bike and scooters segments, and EV launches lined-up this year. Stock is trading at comfortable valuations at a P/E multiple of 14.6x and EV/EBITDA multiple of 7.8x its FY2024E estimates, with attractive dividend yield.
We maintain a Buy on Hero MotoCorp Limited (Hero) with an unchanged PT of Rs. 3,210, led by an expected recovery in rural, semi-urban demand and comfortable valuations.