Buy Hero MotoCorp; target of Rs 3629: Sharekhan

Buy

Sharekhan's research report on Hero MotoCorp

Healthy uptick in retail sales during Onam and Ganesh festivals builds up sales momentum for a 42-day festive period in Q3FY2024. Post receiving over 25,000 bookings for Harley Davidson X 440, the company is focussing on volume ramp up.

Outlook

We maintain our Buy rating on the stock with a revised TP of Rs. 3,629 on healthy recovery in EBITDA margin, strong response to HD X 440, continuous focus on premiumisation, expansion of its EV markets, and attractive valuation. The stock trades at a P/E multiple of 15.3x and EV/EBITDA multiple of 9.0x its FY2025 estimates.

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Hero MotoCorp - 20 - 09-2023 - khan