Hero MotoCorp Ltd. share price target

We maintain our BUY rating on the stock.

Q4 revenue grew 15% YoY supported by double-digit volume gains YoY and realisation adding ~5%

We recommend a BUY on the stock with a target price of Rs 4,935 /share, implying an upside of 10% from the CMP.

HMCL’s stock price has corrected 11% from the recent highs, even as newly
launched Xtreme 125R in the fast-growing 125cc motorcycle category has been
received well (per dealer checks), and led to reversal in market share (15.7%
in Mar-24 vs. 9.7% in Dec-23; peak share of 50%).

AMBER: Persistent near-term challenges; cut to SELL. CPI and IIP: Still some pain points on inflation. Credit Composition: Study on personal loans. HMCL: Healthy quarter but positives priced in. TMX: Improving order outlook; maintain HOLD. BANDHAN: Recovery on track. IGL: Legacy UP, new GAs can offset slowdown, reiterate BUY. ZYWL: Seasonally weak quarter

Q3 revenue grew 21% YoY steered by 17% growth in motorcycle volumes and 22% in scooters; realisations up 3%

Market share gain through new launches, recovery in rural demand, and the performance of the EV portfolio remain critical. Our TP implies a 13% upside from the CMP and as a result, we maintain our BUY rating.