In this blog, we analyze Hero MotoCorp, one of India’s largest two-wheeler manufacturers. If you’re seeking detailed insights about this stock, sourced from the best stock analysis website in India, this is the guide for you.
News
Hero MotoCorp and Harley Davidson have extended their existing collaboration, planning to develop and manufacture a new motorcycle for Indian as well as global markets, the company announced on December 27.
The partnership aims to expand Hero’s premium portfolio, which includes brands like Vida, Harley, Karizma, Xpulse, and Xtreme. The companies also plan to introduce new variants of the X440 motorcycle to capture more market share in the premium segment.
Hero MotoCorp has been enhancing its two-wheeler portfolio with a focus on both ICE and EV scooters. CEO Niranjan Gupta stated that the company plans to grow exponentially in the premium segment. Additionally, Hero MotoCorp is working to strengthen its brand presence by opening up to 100 Premia stores.
This collaboration follows Harley Davidson’s 2020 decision to exit several low-volume markets, handing over sales, service, and distribution of its products in India to Hero MotoCorp. Harley’s India operations had underperformed for over a decade before the partnership.
Fundamental Analysis
Here are the key fundamentals of Hero MotoCorp, sourced from the best stock analysis website in India:
- Market Cap: ₹ 84,789.80 Cr.
- Enterprise Value: ₹ 84,180.87 Cr.
- P/E Ratio: 19.2
- P/B Ratio: 4.34
- ROE: 22.93%
- ROCE: 30.42%
- Debt to Equity Ratio: 0 (Virtually debt-free)
- Sales Growth: 10.80%
- Profit Growth: 36.33%
- Dividend Yield: 3.3%
- EPS (TTM): ₹ 220.78
- Operating Margin: 14.49%
- Cash: ₹ 608.93 Cr.
Strengths:
- The company maintains a healthy ROCE of 30.42%.
- It is virtually debt-free, ensuring stability.
- Excellent cash flow management with a CFO/PAT ratio of 1.20.
- Efficient cash conversion cycle of -33.41 days.
Limitations:
- Revenue growth over the past three years has been moderate at 6.74%.
Hero MotoCorp’s fundamentals suggest a strong financial position, backed by growth in the premium segment and a focus on innovation. For more in-depth insights, refer to the best stock analysis website in India.
Technical Analysis
Below is the 1-day chart for Hero MotoCorp, reflecting its technical position:
Key observations:
- The stock is trading at ₹4,237.95.
- The 9 EMA at ₹4,347.25 is acting as resistance.
- The 50 EMA at ₹4,748.71 and 100 EMA at ₹4,952.46 provide additional resistance zones.
- Declining volume trends indicate reduced buying interest at current levels.
For technical insights like these, always rely on the best stock analysis website in India.
Short-Term Trade Plan
- Entry Point: ₹4,350 (Breakout above 9 EMA with strong volumes)
- Stop-Loss: ₹4,200 (Below current support levels)
- Target 1: ₹4,600
- Target 2: ₹4,800
Long-Term Trade Setup
Hero MotoCorp presents an attractive opportunity for long-term investors, given its strong fundamentals and focus on growth in the premium segment:
- Buy Zone: ₹4,000–₹4,200 (Near current support levels)
- Target: ₹5,500–₹6,000 over the next 12–18 months
- Stop-Loss: ₹3,800
Conclusion
Hero MotoCorp’s strategic partnership with Harley Davidson and focus on the premium and EV segments position it well for future growth. With strong financials and a virtually debt-free structure, the company is a solid bet for both short-term and long-term investors.
For detailed trade setups and actionable insights, always refer to the best stock analysis website in India. Let us know your thoughts in the comments, and stay tuned for more stock analyses!
Disclaimer
This blog is for informational purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions. The author is not responsible for any losses incurred based on the information provided here.