Hero MotoCorp Ltd. share price target

We value HMCL at Rs 4,360 (20x) vs Rs 4,250 earlier. Maintain BUY Hero Motocorps (HMCL) 2QFY18 EBITDA at Rs 14.55bn (+6.3% YoY, with 17.6% margin) was slightly above estimates, led by the benefit of operating leverage and lower other expenses. Net revenue stood at Rs 83.6bn (+7% YoY, +5% QoQ), on the back of 11% YoY rise in volumes. This was offset by lower accounting of GST incentives against excise benefits (Rs. 500mn) for the Hardwar plant, and a fall in net ASP. PAT at Rs 10.1bn (+1% YoY, +11% QoQ) was in-line with estimates.

markets has already started as per the management. Also the Halol plant which started from March will take up the total capacity to 8.9 mn per year which would enable the company to cater to the demand which is expected to move up from FY 18. Another upcoming plant at AP is supposed to take up this capacity to 10 mn in a couple of years. We therefore believe that the company is poised for a healthy volume growth in the ensuing years, sorting out capacity issues if any. Furthermore, H2 will witness a bump up in sales growth based on lower base of last year's H2 when demonetization was implemented. Hence, expect Hero's volumes to grow at a higher pace of 9.1%/10.4% for FY18E/19E respectively....

to lower-than-estimated revenue of INR83.6b (est. of ~INR87b; +7% YoY). While gross margin of 31.9% (-160bp YoY, -40bp QoQ) was in-line, lower other expenses (due to GST accounting and lower CSR) boosted EBITDA margin by 110bp QoQ (-20bp YoY). EBITDA grew 6% YoY (+12% QoQ) to ~INR14.6b (est. of INR14.2b). However, lower other income and higher tax resulted in flat PAT of INR10.1b (in-line). Earning call highlights: a) HMCL indicated healthy volume growth in urban and rural markets, with similar growth since 2QFY18. b) HMCL witnessed...

Hero MotoCorp (HMCL) reported its Q1FY18 numbers, below our estimates on all parameters. However, margins are above Street estimates. The company reported a decent set of numbers, given the sharp margin contraction witnessed in some of its peers Revenues came in at | 7972 crore, up 7.7% YoY, up 15.3% QoQ, vs. our estimate of | 8055 crore with the miss attributable to lower-thanexpected realisations. Net blended ASPs were at | 42950 (down 1% QoQ) vs. our estimate of | 42814 Total volumes for the quarter was at 1853687 units (highest ever...

Hero Motocorps (HMCL) Q1 adjusted margin (16.8%) was ~100 bps higher than estimated. Expecting a recovery in rural volumes and good monsoon, management reiterated its positive outlook on volumes. That coupled with the low base of H2FY17 (demonetization)and market share recovery in scooters, we expec..

Revenue increased by 15.28% to Rs. 7971.58 Cr in Q1FY18 when compared to the previous quarter Revenue increased by 15.28% to Rs. 7971.58 Cr in Q1FY18 when compared to the previous quarter

Hero Motocorp's (HMCL) Q1FY18 number to a great extent, meet the consensus estimates. Net sales were at Rs7,972cr, up 7.7% yoy. EBITDA was at Rs1,296cr up 5.4% yoy and PAT was at Rs914cr, up 3.5% yoy. Consensus estimates of revenue, EBITDA and PAT were Rs8,053cr, Rs1,280cr and Rs912cr. HMCL's performance looks better than quarterly perfor..

We roll forward our target price on Jun-19, and value HMCL at Rs 4,250 (20x Jun-19E EPS) vs Rs 3,740 earlier, and recommend BUY. Hero Motocorps (HMCL) 1QFY18 EBITDA at Rs 12.95bn (+5.4% YoY) was slightly above estimates, led by a price hike made in May-17, and the benefit of operating leverage. Net sales stood at Rs 79bn (+8% YoY, +15% QoQ), on the back of 1.4% YoY rise in net ASP, along with 6% improvement in volumes. PAT at Rs 9.1bn (+4% YoY, +27% QoQ) was in line with estimates. Management expects the strong demand momentum to continue, on expectations of normal monsoon and new launches in FY18.

price hikes and continued success of LEAP program on the other expenses line item. Other expenses to sales were down at 11.4% as compared to 11.7% yoy and 12.9% qoq. Sequentially the margins have scaled up by 250 bps. Depreciation came in 15% higher yoy as Halol plant in...

Revenue increased by 8.65% to Rs. 6915.2 Cr in Q4FY17 when compared to the previous quarter.