Kotak Securities recommended accumulate rating on Hero MotoCorp with a target price of Rs 3217 in its research report dated October 17, 2018.
Kotak Securities' research report on Hero MotoCorp
HMC’s 1QFY19 revenue stood at Rs90.9bn, 8.6% higher compared with 2QFY18. During the quarter under review, HMC sold 2.13mn two wheelers, 5.5% higher YoY. EBITDA de-grew by 5% YoY (was 3% ahead of estimate), impacted by increase in raw material cost, expiry of Haridwar plant benefits and negative operating leverage. HMC reported PAT of Rs9,763mn, 3.4% decline over 2QFY19.
We have marginally revised our estimates lower. We retain ACCUMULATE with revised price target of Rs3,217 (earlier Rs3,473).Weak demand, commodity price increase and adverse forex movement are key risk to our target price.
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