Buy Hero MotoCorp; target of Rs 6782: Motilal Oswal

Buy

Motilal Oswal's research report on Hero MotoCorp

We met with the management of Hero MotoCorp (HMCL) to discuss the demand trends in the domestic 2W market and the company’s plan to capitalize on the same. Demand for 2Ws has picked up well post-GST rate cuts, and it is expected to be sustained, according to the management. Demand was aided by positive rural sentiment which bodes well for HMCL. Management has maintained its volume growth guidance of 8-10% for the 2W industry for H2. While it remains a dominant player in the entry segment, HMCL targets to recover lost share in the 125cc segment post recent variant launches of Glamour and Xtreme125R, which have been well received in the market. HMCL'sscooter segment, both on ICE and EVs, has also picked up well. Management remains confident of a gradual market share recovery in the coming quarters. HMCL’sfocus on the top 10 export markets has helped revive its export momentum. We project a revenue/EBITDA/PAT CAGR of ~10%/12%/13% over FY25-28.

Outlook

We reiterate our BUY rating with a TP of INR6,782 (based on 20x Sep’27E EPS + INR141/423 for Hero FinCorp/Ather after a 20% Holdco discount).

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Hero MotoCorp - 24122025 - moti