Reduce Hero MotoCorp; target of Rs 2672 HDFC Securities

HDFC Securities recommended reduce rating on Hero MotoCorp with a target price of Rs 2672 in its research report dated September 18, 2023.

Broker Research

September 20, 2023 / 11:11 IST

Reduce

26 Aug, 2025 12:21

Volume

Todays L/H

HDFC Securities' research report on Hero MotoCorp

In the current fiscal, HMC’s motorcycle market share further slipped by 380 bps to 44.5%. This is despite its multiple launches in H1, which include Passion Plus, new Glamor, Xtreme160R 4V, X440, and Karizma. In the 125cc segment, it has consistently lost market share to rival launches since FY20, despite multiple attempts to regain share, and this fiscal has been no different. Also, the recent launch of Xtreme160R 4V has not helped it revive any share in the premium segment. We also believe that it is likely to take time for HMC to establish itself as a serious player in the premium segment, given its traditionally weak presence here. Even in scooters, its market share has remained static YoY despite the launch of the Xoom110. The current monsoon deficit across India, especially in the key motorcycle markets, is likely to be an incremental deterrent to the hopes of a demand revival in the entry motorcycle segment, which doesn’t bode well for HMC.

Outlook

-While valuation remains inexpensive relative to peers, the company’s inability to regain market share despite repeated attempts may keep it under pressure. Reiterate REDUCE with an unchanged TP of INR 2,672 – valued at 14x June 2025 EPS.

For all recommendations report, click here