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Hero Motocorp Limited
(HEROMOTOCO)
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Rating:77Outperform
Price Target:
₹6,501.00
▲(29.74% Upside)
Action:Reiterated
Date:08/09/26
The score is driven primarily by strong financial health (low leverage, solid profitability, and improved cash flow). Valuation is supportive with a reasonable P/E and a solid dividend yield. Technicals are positive but overbought momentum signals add near-term pullback risk, tempering the overall score.
Positive Factors
Revenue and Profit Growth
Sustained revenue expansion and rising net income indicate continued product demand and operating scale. This supports the company’s ability to fund investments, defend its market position and absorb moderate cost pressure over the next several quarters.
Negative Factors
Gross Margin Compression
Lower gross margin suggests input-cost pressure, pricing constraints or a less favorable product mix. If the trend persists, it could limit operating leverage and weaken the conversion of revenue growth into sustainable profit growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profit Growth
Sustained revenue expansion and rising net income indicate continued product demand and operating scale. This supports the company’s ability to fund investments, defend its market position and absorb moderate cost pressure over the next several quarters.
Read all positive factors
Hero Motocorp Limited (HEROMOTOCO) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.06T
Dividend Yield3.49%
Average Volume (3M)48.14K
Price to Earnings (P/E)19.5
Beta (1Y)1.18
Revenue Growth25.64%
EPS Growth8.11%
CountryIN
Employees9,225
SectorGeneral
Sector StrengthN/A
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)264.13
Shares Outstanding200,141,200
10 Day Avg. Volume54,680
30 Day Avg. Volume48,136
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
₹6,422.50Price Target Upside28.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)289.13
Revenue Forecast (FY)₹538.28B
Hero Motocorp Limited Business Overview & Revenue Model
Company Description
Hero MotoCorp Limited is a major producer and distributor of powered two-wheel vehicles, such as motorcycles and scooters. The company also supplies engines, various spare parts, and related services. Its operational footprint spans across a wide ...
How the Company Makes Money
Hero MotoCorp primarily makes money by selling two-wheelers (motorcycles and scooters) to customers through a broad network of dealers and distributors. Revenue is largely generated from (1) domestic sales in India across commuter and premium segm...
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 | 83.69B | 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 Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ₹2.09T | 36.26 | ― | 1.08% | 28.07% | 19.24% | |
77 Outperform | ₹1.06T | 19.46 | ― | 3.49% | 25.64% | 8.11% | |
68 Neutral | ₹3.28T | 28.31 | ― | 1.26% | 36.91% | 54.76% | |
59 Neutral | ₹1.96T | 57.25 | ― | 0.29% | 30.24% | 43.76% | |
57 Neutral | ₹624.88B | -155.75 | ― | ― | ― | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
44 Neutral | ₹176.94B | -9.41 | ― | ― | -49.16% | 27.66% |
* General Sector Average
IN:HEROMOTOCO
Hero Motocorp Limited
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Hero Motocorp Limited Corporate Events
Hero MotoCorp names Srihari Mulgund as Chief Strategy Officer
Aug 17, 2026
Hero MotoCorp has appointed Srihari Mulgund as its Chief Strategy Officer, effective August 17, 2026, and inducted him into the company’s leadership team as part of its senior management. The move signals a strengthening of the automakerR...
Hero MotoCorp Clears Q1 FY27 Results and Sets Up CSR-Focused Entity
Aug 6, 2026
Hero MotoCorp’s board has approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, with an independent review by Deloitte Haskins Sells LLP confirming no material misstatements under applicab...
Hero MotoCorp Clears Q1 FY27 Results and Plans New CSR Foundation
Aug 6, 2026
Hero MotoCorp’s board has approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, as part of its regulatory compliance obligations. The board meeting, held on August 6, 2026, also noted that ...
Hero MotoCorp Holds 43rd AGM via Digital Platform, Emphasizes Governance and Stakeholder Trust
Aug 5, 2026
Hero MotoCorp Limited convened its 43rd Annual General Meeting on August 5, 2026, via video conferencing and other audio-visual means, in line with Indian corporate and securities regulations and recent Ministry of Corporate Affairs guidance. The ...
Hero’s VIDA Electric Two-Wheelers Make Global Debut in Nepal
Jul 26, 2026
VIDA, powered by Hero, has made its global debut in Nepal, marking the brand’s first international entry and the start of its global operations via a distributor partnership with CG Motors of the Chaudhary Group. The launch underscores Nepal...
Hero MotoCorp Sets Rs 75 Final Dividend, Moves Fully to Electronic Payouts
Jul 1, 2026
Hero MotoCorp has announced that its board has recommended a final dividend of Rs 75 per equity share, equivalent to 3,750% on shares with a nominal value of Rs 2, for the financial year ended March 31, 2026. The dividend, subject to approval at t...
Hero MotoCorp Sets Virtual AGM for August 5, Proposes Rs 75 Dividend
Jun 27, 2026
Hero MotoCorp has notified shareholders that its 43rd Annual General Meeting will be held on August 5, 2026, at 11:30 a.m. IST via video conferencing and other audio-visual means, in line with Companies Act and SEBI listing regulations. The AGM no...
Hero MotoCorp Approves New RSU and PRSU Grants for Employees
Jun 24, 2026
Hero MotoCorp’s Nomination and Remuneration Committee has approved the grant of 52,056 Restricted Stock Units and 75,000 Performance Restricted Stock Units to certain eligible employees. Each unit is convertible into one equity share at a fa...
Hero MotoCorp Maintains Growth Momentum with Strong May Dispatches and EV Push
Jun 1, 2026
Hero MotoCorp reported sustained growth in May 2026, dispatching 570,068 two-wheelers, up from 507,701 a year earlier, supported by robust domestic retail activity of nearly 497,000 VAHAN registrations. The company’s domestic motorcycle and ...
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.