Hero MotoCorp Ltd. share price target

Maintain BUY with a reduced TP of Rs 3350(16x Dec-20E EPS) Hero Motocorps (HMCL) 3QFY19 numbers were broadly in line with estimates. Net revenue at Rs 78.6bn(+7.7% YoY) was led by 5.3% volume growth. EBITDA fell 5% YoY to Rs 11bn as margins came inline with estimates at 14% (-180bps YoY/112 bps QoQ). Margins were impacted due to input cost pressures. APAT stood at Rs. 7.7bn (-4%) YoY. We expect 4Q retails to be higher, led by marriage season demand (there are significantly more auspicious marriage days in 2019 as compared to 2018) and recovery in rural markets (aided by the budget stimulus.). Thus, we expect sales to grow in high single digit in FY20.

ICICI Securities Ltd | Retail Equity Research Hero MotoCorp (HMCL) reported a mixed Q3FY19 performance Total 2-W sales volume for the quarter came in at 18.0 lakh units, up 5.3% YoY. Scooter sales volume was at 1.8 lakh units, down 18.4% YoY. Motorcycle sales volume was at 16.2 lakh units, up 8.8% YoY Consequent net sales were at | 7,865 crore, up 7.7% YoY, with blended realisations (ASP) for the quarter amounting to | 43,720/unit vs. | 42,600/unit in Q2FY19 and | 42,745/unit in Q3FY18...

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.

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%....