Buy Hero MotoCorp: target of Rs 3496: Sharekhan
Sharekhan is bullish on Hero MotoCorp has recommended buy rating on the stock with a target price of Rs 3496 in its research report dated December 30, 2020.
December 31, 2020 / 01:16 PM IST
Sharekhan's research report on Hero MotoCorp
HMCL continues to benefit from premiumisation of its products, its stronghold in the economy and executive motorcycle segments, and aggressive products offerings in the premium bike and scooters segments. Exports, electric vehicles, and partnership with Harley Davidson are the next key growth drivers for the company in the long term. The stock is attractively valued with P/E multiple of 15.3x and EV/EBITDA multiple of 8.8x its FY2023E estimates and is at a 15%-20% discount to its long-term average multiples. We recommend Buy on the stock.
We reiterate our Buy rating on Hero MotoCorp Limited (HMCL) with a PT of Rs. 3,496, after holding a call with the company’s management. Interaction with the management indicates that structural growth traction in the two-wheeler (2W) industry remains intact.
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