Hero MotoCorp Ltd. share price target

Hero MotoCorp's (HMCL) Q3FY19 operating performance missed estimates, Change in Estimates | Target | Reco with EBITDA margins at 14% (vs PLe of 14.6%) down 179bps YoY/ 112bps...

31 January 2019 increased 5.3% YoY (-16% QoQ) to 1.8m units. Realizations increased 2.2% QoQ) and higher spare sales (+5% YoY). EBITDA declined ~5% YoY (-20% QoQ) to ~INR11b (in-line), with the margin contracting 180bp YoY (-120bp QoQ) to 14%. However, higher other income restricted PAT decline to ~4.5% increased 9% YoY, while EBITDA/PAT declined 1%/3% YoY. The company announced an interim dividend of ~INR55/share (FY18 (a) HMCL expects volumes to recover QoQ in 4QFY19. It guided for high-single-digit growth in FY20, led by pre-buying in 2HFY20 ahead of BS6 implementation. (b) Rural demand was muted in 3Q, but HMCL expects a recovery from 1QFY20. (c) Launch of Destini in Oct18 helped capture ~10% market share in the 125cc scooter segment at retail level. (e) Financing is not a problem so far (37- 40% of volumes are financed).

Demand to remain flat in near term; expect gradual improvement from Q4FY2019: Hero Motocorp Ltd (HMCL) volumes have been under pressure led by moderation in the 2W demand on the back of higher mandatory insurance costs for 2W, NBFC liquidity squeeze, rise in fuel prices. The festive demand moderated (festive demand growth at retail level was...

Demand to remain flat in near term; expect gradual improvement from Q4FY2019: Hero Motocorp Ltd (HMCL) volumes have been under pressure led by moderation in the 2W demand on the back of higher mandatory insurance costs for 2W, NBFC liquidity squeeze, rise in fuel prices. The festive demand moderated (festive demand growth at retail level was...

In keeping with its strategic focus on higher-engine capacity products, Hero MotoCorp today launched its first 125 cc scooter, Destini 125. The powerful Destini 125 aims to fortify Hero's presence in the fast-growing 125cc scooter segment. The new Destini 125 will be available from tomorrow across Hero dealerships in the Delhi-NCR region, at a price of Rs. 54,650 (Ex-Showroom) for the Lx variant and Rs. 57,500 (Ex-Showroom) for the Vx variant. The retail sales of the Destini 125 in other markets across the country will commence over the next 3-4 weeks. Destini 125 is also the first and only scooter in India to feature the highly efficient idle start-stop-system, based on Hero's revolutionary i3S...

The OPM during the second quarter ended Sept 2018 fell 220 bps to 15.2% due to increased cost on all fronts. Raw material cost (as a % to sales, net of stock) rose 170 bps to 69.6%. Other expenses (% of sales net of stock) rose 70 bps to 10.6%. Employee expenses rose 10 bps at...

Hero MotoCorp Ltd Q2FY19 results Comment Revenue rose by 3.19% to Rs. 9090.94 Cr in Q2FY19 when compared to the previous quarter. Also, it increased by 8.59% when compared with Q2FY18.

Hero MotoCorp (HMCL) Q2FY19 results were in-line with our and consensus estimates on operating level. EBITDA margin for the quarter stood at 15.2% vs our and consensus estimates of 15.3% and 15.5% respectively. Operating performance in-line: Revenue grew +9% YoY/+3% QoQ to Rs90.9bn. Revenue performance were driven by volume growth of +6% YoY/ +1% QoQ to 2.1mn. Net realization grew +3% YoY/+2% QoQ to ~Rs42.6k. Spare part business grew 24% QoQ to Rs7.1bn. RM cost for the quarter increased +10% YoY/+2% QoQ to Rs62.9bn. Company has taken a price hike of Rs500 to offset the commodity cost. Company has taken another...

ICICI Securities Ltd | Retail Equity Research Hero MotoCorp (HMCL) reported a steady Q2FY19 performance and was a beat on the topline and bottomline front led by higher spare parts income (up 24% YoY) and higher other income, respectively Total 2W sales volume for the quarter came in at 21.3 lakh units, up 5.5% YoY. Scooter sales volume was at 2.1 lakh units, down 13.8% YoY. Motorcycle sales volume was at 19.3 lakh units, up 8.4% YoY Consequent net sales were at | 9,091 crore, up 8.7% YoY. Blended...

Demand was muted due to increasing interest rates. However, management expects a turnaround during the festive season and expects a growth of around 8-10%....