Feb 16, 2017 04:37 PM IST | Source: Moneycontrol.com
Hold Hero MotoCorp; target of Rs 3330: ICICI Direct
ICICI Direct recommended hold rating on Hero MotoCorp with a target price of Rs 3330 in its research report dated February 14, 2017.
ICICI Direct's research report on Hero MotoCorp
Hero MotoCorp (HMCL) reported its Q3FY17 numbers with topline in line with our estimates but margins & PAT above estimates. Revenues came in at Rs 6365 crore, down 11.9% YoY, 18.4% QoQ, vs. our estimate of Rs 6385 crore with the marginal miss attributable to lower than estimated realisations.
Although long term structural drivers exist in the form of governments focus on doubling farm income, reducing replacement cycles & low finance penetration, in the near term, growth will be a challenge in the 2- W space. Therefore, we change our rating to HOLD. We value HMCL at 16x FY19E EPS to arrive at a target price of Rs 3330. We have a HOLD recommendation on the stock.
For all recommendations, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies 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.