Hero Motocorp Limited (IN:HEROMOTOCO)
:HEROMOTOCO
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Hero Motocorp Limited
(HEROMOTOCO)
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Rating:74Outperform
Price Target:
₹5,960.00
▲(13.97% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by strong financial health (low leverage, solid profitability, and improved FY2026 cash generation). Valuation is supportive with a reasonable P/E and an attractive dividend yield. Technicals are the main offset, showing mixed trend alignment and slightly soft momentum (negative MACD) despite short-term support above the 20/50-day averages.
Positive Factors
Conservative balance sheet
Very low leverage and a growing equity base provide durable financial flexibility. This reduces refinancing and solvency risk, supports capital allocation for capex or dividends, and allows the company to withstand demand slowdowns without relying on costly debt financing.
Negative Factors
Margin volatility
Noticeable gross margin compression signals exposure to input-cost swings or pricing pressure. Persistent margin volatility undermines earnings predictability and requires sustained cost control or stronger pricing power to maintain long-term profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and a growing equity base provide durable financial flexibility. This reduces refinancing and solvency risk, supports capital allocation for capex or dividends, and allows the company to withstand demand slowdowns without relying on costly debt financing.
Read all positive factors
Hero Motocorp Limited (HEROMOTOCO) vs. iShares MSCI India ETF (INDA)
Market Cap
₹994.04B
Dividend Yield2.9%
Average Volume (3M)26.71K
Price to Earnings (P/E)17.6
Beta (1Y)1.20
Revenue Growth15.85%
EPS Growth31.09%
CountryIN
Employees9,225
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)264.13
Shares Outstanding200,092,940
10 Day Avg. Volume20,053
30 Day Avg. Volume26,714
Financial Highlights & Ratios
PEG Ratio0.57
Price to Book (P/B)4.69
Price to Sales (P/S)2.14
P/FCF Ratio13.58
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹5,895.00Price Target Upside12.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)284.72
Revenue Forecast (FY)₹518.06B
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 a...
How the Company Makes Money
Hero MotoCorp primarily makes money by manufacturing and selling two-wheelers (motorcycles and scooters). Revenue is largely generated from wholesale/dispatch sales of vehicles to its dealer network, which then retails to end customers; overall vo...
Hero Motocorp Limited Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
88
Very Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 419.65B | 474.11B | 407.12B | 375.99B | 337.38B | 289.78B |
| Gross Profit | 141.94B | 120.47B | 136.74B | 119.66B | 97.03B | 79.74B |
| EBITDA | 78.67B | 70.45B | 68.29B | 59.24B | 46.66B | 38.01B |
| Net Income | 52.83B | 57.42B | 43.78B | 37.45B | 28.10B | 23.17B |
Balance Sheet | ||||||
| Total Assets | 326.61B | 334.53B | 283.90B | 261.53B | 239.17B | 224.78B |
| Cash, Cash Equivalents and Short-Term Investments | 107.95B | 129.72B | 71.88B | 49.74B | 40.60B | 61.34B |
| Total Debt | 9.33B | 7.79B | 7.00B | 6.06B | 5.68B | 6.05B |
| Total Liabilities | 115.11B | 116.42B | 89.86B | 83.18B | 71.36B | 64.84B |
| Stockholders Equity | 210.05B | 216.11B | 192.72B | 176.99B | 166.56B | 158.47B |
Cash Flow | ||||||
| Free Cash Flow | 30.82B | 74.59B | 34.41B | 41.35B | 20.10B | 15.34B |
| Operating Cash Flow | 35.82B | 85.59B | 42.97B | 49.23B | 26.14B | 21.04B |
| Investing Cash Flow | -22.94B | -47.38B | -17.03B | -18.28B | -4.21B | -2.22B |
| Financing Cash Flow | -13.75B | -35.17B | -28.15B | -27.17B | -21.47B | -19.75B |
Hero Motocorp Limited Technical Analysis
Negative
5229.25
Price Trends
5209.96
Negative
5403.17
Negative
5355.36
Negative
Market Momentum
-58.75
Positive
41.85
Neutral
16.92
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HEROMOTOCO, the sentiment is Negative. The current price of 5229.25 is above the 20-day moving average (MA) of 5095.59, above the 50-day MA of 5209.96, and below the 200-day MA of 5355.36, indicating a bearish trend. The MACD of -58.75 indicates Positive momentum. The RSI at 41.85 is Neutral, neither overbought nor oversold. The STOCH value of 16.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HEROMOTOCO.
Hero Motocorp Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ₹994.04B | 17.64 | ― | 2.90% | 15.85% | 31.09% | |
70 Outperform | ₹2.92T | 22.81 | ― | 2.31% | 23.36% | 46.63% | |
69 Neutral | ₹1.88T | 35.30 | ― | 0.96% | 26.19% | 20.47% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | ₹1.46T | 26.60 | ― | 0.91% | 2.50% | -3.70% | |
49 Neutral | ₹1.60T | 52.95 | ― | 0.27% | 26.32% | 35.09% |
* Consumer Cyclical Sector Average
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Hero Motocorp Limited
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Hero Motocorp Limited Corporate Events
Hero MotoCorp Names New CTO to Drive Next-Gen Mobility Push
May 4, 2026
Hero MotoCorp has appointed industry veteran Sachin Agrawal as Chief Technology Officer, effective May 21, 2026, while incumbent CTO Vikram Kasbekar steps down from the role but remains on the board as Executive Director. The move signals a planne...
Hero MotoCorp Allots 3,161 Equity Shares Under Employee Incentive Scheme
May 4, 2026
Hero MotoCorp’s Nomination and Remuneration Committee has allotted 3,161 equity shares of ₹2 each to eligible employees who exercised stock options and units under the Employee Incentive Scheme 2014. The allotment spans multiple stock ...
Hero MotoCorp Elevates Chief Quality Officer to Senior Management Role
Mar 19, 2026
Hero MotoCorp has designated its Chief Quality Officer, Manish Srivastava, as senior management personnel effective April 1, 2026, in line with disclosure requirements under SEBI’s Listing Regulations. Srivastava, an NIT Durgapur engineering...
Hero MotoCorp Withholds Interim Dividends Pending KYC Compliance
Mar 17, 2026
Hero MotoCorp has informed stock exchanges that it has sent letters to shareholders whose interim dividend for FY 2025-26 has been withheld due to non-compliance with updated Know Your Customer norms for physical shareholdings. The move follows a ...
Hero MotoCorp Schedules Investor Group Meeting and Plant Visit in Gurgaon
Mar 16, 2026
Hero MotoCorp has scheduled an investor and analyst engagement that includes a group meeting and plant visit in Gurgaon on March 19, 2026, organized by Elara Securities. The event, which may be rescheduled if business needs arise, underscores the ...
Hero MotoCorp Tax Demand Cut Sharply After Income Tax Appeal Orders
Mar 12, 2026
Hero MotoCorp has informed the stock exchanges that it has received appeal orders from the Commissioner of Income Tax (Appeals) for assessment years 2013-14 to 2017-18 and 2019-20, substantially reducing its income tax demand from Rs. 177.96 crore...
Hero MotoCorp Alerts Shareholders on Withheld Dividends After Electronic Payment Failures
Mar 10, 2026
Hero MotoCorp has informed stock exchanges that it has sent letters to shareholders whose dividend payments could not be processed electronically due to banking system rejections. The move follows regulatory changes that have made electronic trans...
Hero MotoCorp Publishes Notice on Issuance of Duplicate Share Certificates
Mar 7, 2026
Hero MotoCorp has notified the stock exchanges that it has published newspaper advertisements concerning the issue of duplicate share certificates, specifically Letters of Confirmation in place of original certificates reported lost and not tracea...
Hero MotoCorp to Join Arihant Capital’s 2026 Investor Conference
Mar 6, 2026
Hero MotoCorp Limited has announced its participation in the Arihant Capital Bharat Connect Conference: Rising Stars – 2026, scheduled for March 11, 2026. The meeting will be held virtually as an investor conference with an investor group fo...
Hero MotoCorp posts 44% dispatch surge in February as scooters, EVs and exports power growth
Mar 1, 2026
Hero MotoCorp reported its strongest February performance on record, dispatching 558,216 two-wheelers in February 2026, a jump of about 44% year-on-year, while VAHAN registrations rose 18% to 458,346 units, underscoring robust underlying retail de...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.