Buy Hero MotoCorp; target of Rs 3740: HDFC Securities

HDFC Securities is bullish on Hero MotoCorp has recommended buy rating on the stock with a target price of Rs 3740 in its research report dated May 11, 2017.

May 15, 2017 / 10:53 IST

26 Aug, 2025 12:21

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HDFC Securities' research report onHero MotoCorp

Hero Motocorp’s (HMCL) 4QFY17 EBITDA at Rs 9.57bn (-19.5% YoY) came in below estimates, led by a poor model mix, higher RM cost and discounts offered to clear the BS3 inventory. PAT at Rs 7.2bn (-14% YoY) was affected by a lower operating margin (13.8%, -200bps YoY).

Outlook

We believe potential demand drivers of 2W sales would be robust farm output, benefits from the revision of the Pay Commission and government policies to boost farm income. Maintain BUY with a TP of Rs 3,740(18x FY19E EPS).

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first published: May 15, 2017 10:53 am

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