October 17, 2016 / 18:20 IST
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 MotoCorpDuring 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.
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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).
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