Buy Hero MotoCorp; target of Rs 4,761: Motilal Oswal

Motilal Oswal research report on Hero MotoCorp

Hero MotoCorp’s (HMCL) 4QFY25 margins remained stable YoY and were also in line with our estimates. Reported EBITDA margin came in at 14.2%, while ICE margins stood at 16.1%, adjusted for the INR 1.43b loss in EV business.

Outlook

We expect HMCL to deliver a volume CAGR of 5% over FY25-27, driven by new launches and a ramp-up in exports. HMCL will also benefit from a gradual rural recovery, given strong brand equity in the economy and executive segments. The stock looks attractive at 16.6x/15.3x FY26E/27E EPS. We reiterate BUY with a TP of INR 4,761 (17x FY27E EPS + INR 110/INR 140 for Hero FinCorp/ Ather post 20% Holdco discount).

For all recommendations report, 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.

Motilal_Hero MotoCorp