Sharekhan is bullish on Hero MotoCorp has recommended buy rating on the stock with a target price of Rs 3200 in its research report dated July 20, 2020.
Sharekhan's research report on Hero MotoCorp
Buoyant rural sentiments would lead to faster recovery for Hero given its higher rural exposure. While near term demand would be impacted by COVID-19; management expects recovery from H2FY21 driven by strong rural sentiments, pent up demand and preference for personal transport in post COVID era. Long term growth levers for 2W industry are intact. Hero is focusing on export markets and premiumisation of product portfolio to drive growth. Valuations at 16.1x FY22 earnings are lower than its long-term historical average. Hero remains our preferred pick in automotive space.
We retain Buy rating on Hero Motocorp (Hero) with revised PT of Rs 3,200.
For all recommendations report, click here
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