Moneycontrol
Oct 17, 2016 06:20 PM IST | Source: Moneycontrol.com

Hero MotoCorp Q2 PAT seen up 3.5% to Rs 913.1 cr: Centrum

Net Sales are expected to increase by 5.5 percent Q-o-Q (up 14.2 percent Y-o-Y) to Rs 7807.3 crore, according to Centrum.

 
 
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Centrum has come out with its second quarter (July-September) earnings estimates for the Automobiles sector. The brokerage house expects Hero MotoCorp to report net profit at Rs 913.1 crore, up 3.5 percent quarter-on-quarter.


Net Sales are expected to increase by 5.5 percent Q-o-Q (up 14.2 percent Y-o-Y) to Rs 7807.3 crore, according to Centrum.


Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 4 percent Q-o-Q (up 18 percent Y-o-Y) to Rs 1278.6 crore.


Centrum's report on Hero MotoCorp

During the quarter, the company registered strong volume growth of 16% YoY and 4% QoQ. Overall volume during the quarter stood at 1,823,498 units. We believe the volume growth was largely driven by strong rural demand and new launches in scooter segment.


We expect recurring PAT of Rs9.1bn, up 18% YoY / 4% QoQ. We continue to maintain Hold rating on the stock, with a TP of Rs3,250 (16x Fy18E EPS).

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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