Hero Motocorp Limited (HEROMOTOCO) AI Stock Analysis

• Market Cap: ₹929.32B
• Dividend Yield: 3.51%
• Average Volume (3M): 27.13K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 1.04
• Revenue Growth: 3.30%
• EPS Growth: 23.39%
• Country: IN
• Employees: 9,225
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Auto - Manufacturers
• EPS (TTM): 56.22
• Shares Outstanding: 200,067,860
• 10 Day Avg. Volume: 39,377
• 30 Day Avg. Volume: 27,132
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹4,357.36
• Price Target Upside: -7.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 79 Outperform
• Price Target: ₹4,909.00 ▲(4.31% Upside)

Hero Motocorp's solid financial performance and reasonable valuation are the primary drivers of its strong stock score. The positive technical indicators further support the stock's potential for growth. The lack of recent earnings call data and corporate events slightly limits the overall assessment.

Hero Motocorp Limited Business Overview & Revenue Model

Company Description

Hero MotoCorp Limited, headquartered in New Delhi, India, is the world's largest manufacturer of two-wheelers. The company was originally part of Hero Honda, a joint venture between the Hero Group and Honda Motor Company, but became Hero MotoCorp after the two companies separated in 2010. Hero MotoCorp is primarily engaged in the design, development, manufacturing, and sale of motorcycles, scooters, and related spare parts. The company operates in the automotive sector and has a strong presence in various international markets, with a wide range of products catering to different customer segments.

How the Company Makes Money

Hero MotoCorp generates revenue primarily through the sale of motorcycles and scooters, which form the core of its product line. The company offers a diverse range of two-wheelers, from entry-level models to premium motorcycles, catering to a broad spectrum of consumers. In addition to vehicle sales, Hero MotoCorp also earns revenue from the sale of spare parts and accessories, which are essential for maintenance and customization of their products. The company's extensive distribution network, both domestically and internationally, plays a crucial role in driving sales. Hero MotoCorp also benefits from strategic partnerships and joint ventures that enhance its product offerings and market reach. Furthermore, the company invests in research and development to innovate and improve its products, ensuring a competitive edge in the market.

Hero Motocorp Limited Financial Statement Overview

Summary

Hero Motocorp shows strong growth and profitability, with a solid balance sheet and healthy cash flow. Despite some pressure on operational margins, the company maintains low leverage and demonstrates strong shareholder returns.

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	Dec 2025	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	409.23B	341.58B	375.99B	289.78B	304.52B
Gross Profit	140.13B	101.24B	119.17B	79.10B	85.73B
EBITDA	68.29B	46.68B	60.25B	38.01B	46.36B
Net Income	43.78B	28.10B	37.45B	23.17B	29.18B
Balance Sheet
Total Assets	283.90B	239.17B	261.53B	224.78B	230.96B
Cash, Cash Equivalents and Short-Term Investments	73.52B	40.60B	49.74B	61.34B	65.72B
Total Debt	7.00B	5.68B	6.06B	6.05B	5.84B
Total Liabilities	89.86B	71.36B	83.18B	64.84B	75.36B
Stockholders Equity	192.72B	166.56B	176.99B	158.47B	154.16B
Cash Flow
Free Cash Flow	34.41B	20.10B	41.35B	15.34B	35.29B
Operating Cash Flow	42.97B	26.14B	49.23B	21.04B	41.10B
Investing Cash Flow	-17.03B	-4.21B	-18.28B	-2.22B	-22.89B
Financing Cash Flow	-28.15B	-21.47B	-27.17B	-19.75B	-18.52B

Hero Motocorp Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4706.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 4706.1 is above the 20-day moving average (MA) of 4435.89, above the 50-day MA of 4331.18, and above the 200-day MA of 4117.80, indicating a bullish trend. The MACD of 113.46 indicates Negative momentum. The RSI at 64.91 is Neutral, neither overbought nor oversold. The STOCH value of 88.28 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
HEROMOTOCO	79 Outperform	₹929.32B	18.44		3.51%	3.30%	23.39%
HYUNDAI	70 Outperform	₹1.82T	32.94		0.93%	-2.62%	-11.26%
EICHERMOT	69 Neutral	₹1.55T	32.05		1.23%	15.21%	15.48%
TATAMOTORS	69 Neutral	₹2.41T	11.36		0.90%	-1.08%	-34.23%
BAJAJ.AUTO	66 Neutral	₹2.29T	30.19		2.54%	12.27%	-4.25%
Sector *	61 Neutral	$17.22B	11.49	-5.97%	3.08%	1.37%	-15.54%
TVSMOTOR	59 Neutral	₹1.41T	59.04		0.33%	14.06%	39.28%

Hero Motocorp Limited Corporate Events

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.

Hero MotoCorp Announces Virtual AGM and E-Voting Details for 2025

Hero MotoCorp Limited has announced the details of its 42nd Annual General Meeting (AGM), which will be held virtually on August 5, 2025. The company has dispatched electronic copies of the AGM notice and the Annual Report for the fiscal year 2024-25 to its members. The AGM will include e-voting options for shareholders, with specific dates set for remote e-voting. Additionally, the company has outlined procedures for members to register or update their email addresses to facilitate participation. The register of members will be closed from July 25 to August 5, 2025, for the purpose of the AGM and determining dividend entitlements.

Hero MotoCorp Grants RSUs and PRSUs to Employees

Hero MotoCorp Limited has announced the approval of 58,500 Restricted Stock Units (RSUs) and 70,000 Performance Restricted Stock Units (PRSUs) for eligible employees, as decided by its Nomination and Remuneration Committee. These stock units, convertible into equity shares, are part of the company’s employee incentive scheme and are expected to enhance employee engagement and retention, aligning with SEBI regulations.