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    HomeNewsBusinessStocksBuy Hero Motocorp; target of Rs 3655: Axis Direct

    Buy Hero Motocorp; target of Rs 3655: Axis Direct

    Axis Direct is bullish on Hero Motocorp has recommended buy rating on the stock with a target price of Rs 3655 in its research report dated February 15, 2017.

    February 20, 2017 / 17:39 IST

    Axis Direct's research report onHero Motocorp

    Hero Motocorp’s (HMCL) Q3operating performance was 11% ahead of estimate, as EBITDA margin at 17.0% (up 130 bps YoY) beat est of 15.4%. Management expects single digit growth in FY18 post ~9% decline in Nov/ Dec.

    Outlook

    We expect HMCL’s volumes to grow by 13% in FY18 after 5 years of flattish volume (only 2% CAGR). Valuations at 16x& 10x FY18 PE & EV/EBITDA are undemanding. Our FY18 estimates are largely unchanged. Maintain BUY with TP of Rs 3,655 (12x FY18E EV/EBITDA).

    For all recommendations, click hereDisclaimer: 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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    first published: Feb 20, 2017 05:39 pm

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