Hero Motocorp Limited (HEROMOTOCO) AI Stock Analysis

• Market Cap: ₹1.06T
• Dividend Yield: 2.67%
• Average Volume (3M): 26.71K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 1.04
• Revenue Growth: 5.18%
• EPS Growth: 27.60%
• Country: IN
• Employees: 9,225
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): 69.54
• Shares Outstanding: 200,067,860
• 10 Day Avg. Volume: 20,053
• 30 Day Avg. Volume: 26,714
• PEG Ratio: 1.02
• Price to Book (P/B): 3.90
• Price to Sales (P/S): 1.84
• P/FCF Ratio: 21.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹5,674.86
• Price Target Upside: -8.08% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ₹6,826.00 ▲(10.56% Upside)

Hero Motocorp's strong financial performance and bullish technical indicators are the primary drivers of its stock score. Despite high valuation metrics suggesting potential overvaluation, the company's solid financial health and market momentum support a positive outlook. However, overbought technical indicators could lead to short-term volatility.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and flexibility, allowing for strategic investments and resilience against downturns.

Cash Generation Ability

Robust cash generation supports operational needs and strategic investments, ensuring the company can sustain growth and navigate financial challenges.

Negative Factors

Operational Margin Pressure

Decreasing operational margins may impact profitability, indicating challenges in cost management or increased competition, which could affect long-term financial performance.

Free Cash Flow Decline

Reduced free cash flow limits the company's ability to invest in growth opportunities and return capital to shareholders, potentially impacting future expansion.

Operational Challenges

Operational challenges, such as cost pressures, can hinder profitability and require strategic adjustments to maintain competitive advantage and financial health.

Hero Motocorp Limited Business Overview & Revenue Model

Company Description

Hero MotoCorp Limited manufactures and sells motorized two wheelers, spare parts, and related services in Asia, Central and Latin America, and Africa and Middle East. It offers motorcycles and scooters. The company also provides engines, as well as related parts and accessories. It has a strategic partnership with Gogoro Inc. to enhance the shift to sustainable electric mobility in India. The company was formerly known as Hero Honda Motors Ltd. and changed its name to Hero MotoCorp Limited in July 2011. Hero MotoCorp Limited was incorporated in 1984 and is based in New Delhi, India.

How the Company Makes Money

Hero Motocorp generates revenue primarily through the sale of two-wheelers, including motorcycles and scooters, which constitute the bulk of its revenue. The company benefits from a large domestic market in India, where it holds a significant market share, as well as exports to various international markets. Additional revenue streams include the sale of spare parts and accessories, as well as servicing and maintenance of vehicles. The company has also explored partnerships with technology firms to enhance its product offerings, particularly in electric mobility, which could contribute to future revenue growth. Moreover, its strong brand reputation and extensive distribution network support consistent sales and customer loyalty, contributing to its overall earnings.

Hero Motocorp Limited Financial Statement Overview

Summary

Hero Motocorp shows robust growth and profitability, supported by a strong balance sheet and healthy cash flow. Revenue and profit margins are generally positive, although operational margins have faced some pressure. The company maintains low leverage, minimizing financial risk, and demonstrates strong shareholder returns. While cash flow growth has moderated, financial health remains solid.

Income Statement

Hero Motocorp has demonstrated consistent growth in revenue over the years, with a notable revenue growth rate of approximately 8.8% in the most recent fiscal year. The gross profit margin stands at a healthy 34.2%, indicating efficient production processes. However, the decline in EBIT margin from 20.9% to 12.5% over two years suggests rising operational costs or competitive pressures. Net profit margin remains strong at 10.7%, reflecting good control over costs. Overall, the income statement reflects a stable and growing company with some operational challenges.

Balance Sheet

The company maintains a robust financial position with a strong equity base, evidenced by an equity ratio of 67.9%. The debt-to-equity ratio is low at 0.036, indicating prudent financial management and low leverage risk. Return on equity is impressive at 22.7%, showcasing efficient use of shareholder funds to generate profits. The balance sheet reflects financial stability, although the slight increase in total debt needs monitoring.

Cash Flow

Hero Motocorp's operating cash flow remains strong, with a slight decline in free cash flow over the last year due to increased capital expenditures. The operating cash flow to net income ratio of 0.98 reflects solid cash-generating capabilities. Although free cash flow growth has slowed, the company continues to generate sufficient cash to cover operational and investment needs, which supports its financial health.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	404.40B	409.23B	375.99B	337.38B	289.78B	304.52B
Gross Profit	139.52B	140.13B	119.17B	97.03B	79.74B	85.73B
EBITDA	75.49B	68.29B	60.25B	46.68B	39.93B	46.36B
Net Income	50.38B	43.78B	37.45B	28.10B	23.17B	29.18B
Balance Sheet
Total Assets	0.00	283.90B	261.53B	239.17B	224.78B	230.96B
Cash, Cash Equivalents and Short-Term Investments	71.88B	71.88B	49.74B	40.60B	61.34B	65.72B
Total Debt	0.00	7.00B	6.06B	5.68B	6.05B	5.84B
Total Liabilities	-194.04B	89.86B	83.18B	71.36B	64.84B	75.36B
Stockholders Equity	194.04B	192.72B	176.99B	166.56B	158.47B	154.16B
Cash Flow
Free Cash Flow	0.00	34.41B	41.35B	20.10B	15.34B	35.29B
Operating Cash Flow	0.00	42.97B	49.23B	26.14B	21.04B	41.10B
Investing Cash Flow	0.00	-17.03B	-18.28B	-4.21B	-2.22B	-22.89B
Financing Cash Flow	0.00	-28.15B	-27.17B	-21.47B	-19.75B	-18.52B

Hero Motocorp Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6173.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HEROMOTOCO, the sentiment is Positive. The current price of 6173.9 is above the 20-day moving average (MA) of 5684.53, above the 50-day MA of 5568.32, and above the 200-day MA of 4528.72, indicating a bullish trend. The MACD of 169.66 indicates Negative momentum. The RSI at 77.45 is Negative, neither overbought nor oversold. The STOCH value of 96.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:HEROMOTOCO.

Hero Motocorp Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EICHERMOT	76 Outperform	₹1.90T	39.23	―	0.99%	25.37%	19.52%
HEROMOTOCO	72 Outperform	₹1.06T	21.08	―	2.67%	5.18%	27.60%
HYUNDAI	65 Neutral	₹1.94T	34.02	―	0.90%	-0.35%	-4.21%
BAJAJ.AUTO	64 Neutral	₹2.44T	32.17	―	2.31%	11.83%	13.79%
TVSMOTOR	63 Neutral	₹1.66T	63.23	―	0.28%	16.89%	38.92%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TATAMOTORS	60 Neutral	₹1.50T	7.06	―	1.02%	-6.87%	193.82%

Hero Motocorp Limited Corporate Events

Hero MotoCorp Appoints New CHRO to Drive People Strategy

Hero MotoCorp Ltd. has announced the appointment of Ms. Madhuri Mehta as the new Chief Human Resources Officer, effective October 1, 2025. With over 24 years of experience in HR leadership roles across various industries, Madhuri will lead the company’s global people strategy and culture transformation, reinforcing Hero MotoCorp’s commitment to aligning people strategies with business goals and fostering a high-performance, inclusive workplace.

Hero MotoCorp Launches All-New Destini 110 Scooter

Hero MotoCorp has launched the all-new Destini 110 scooter, designed to cater to the everyday needs of families and first-time buyers. The Destini 110 offers segment-leading mileage, comfort, and durability, aiming to redefine the 110cc commuter scooter category in India. This launch is expected to strengthen Hero MotoCorp’s presence in the scooter segment and increase its market volumes.

Hero MotoCorp Releases Q1 FY ’26 Earnings Call Transcript

Hero MotoCorp Limited has released the transcript of its earnings conference call for the quarter ended June 30, 2025. The call, held on August 7, 2025, provided insights into the company’s financial performance and strategic direction. This disclosure is part of the company’s compliance with regulatory requirements and aims to keep stakeholders informed about its operational and financial status.

Hero MotoCorp Achieves 21% Growth with Strong July Dispatches

In July 2025, Hero MotoCorp achieved a significant milestone by dispatching 449,755 units of motorcycles and scooters, marking a 21% year-on-year growth. The company also saw a surge in its electric vehicle segment, with VIDA surpassing 11,200 units sold and doubling its EV market share to 10.2%. This growth reflects Hero MotoCorp’s strategic expansion in key segments and its commitment to innovation, particularly in electric mobility, positioning the company strongly in the global market.

Hero MotoCorp Schedules Earnings Call for August 2025

Hero MotoCorp Limited has announced an upcoming earnings conference call scheduled for August 7, 2025, following a Board of Directors meeting on August 6, 2025. This call aims to discuss the company’s financial performance and is part of their regular investor relations activities, reflecting their commitment to transparency and stakeholder engagement.