Motilal Oswal's report on Hero MotocorpHMCL’s Aug-15 volumes declined 14% YoY (-1.4% MoM) to 480,537 units (v/s est 530,679 units).We estimate volume growth of ~3.7% for FY16, implying residual growth of 11.3% or ~609k units.HMCL has lined up slew of new launches for upcoming festive season with two brand new scooters, followed by new exciting bikes.HMSI reported a sales of ~395k units up 1% YoY, with scooters sales being up 13% YoY to 246,750 units.The stock trades at 15.5/13x FY16/17 EPS of ~INR154/184. Maintain Buy.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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