Hero MotoCorp Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Hero MotoCorp (HMCL) reported Q2FY17 numbers that were higher than our estimates on the operational front. Revenues at | 7796 crore, up 14.5% YoY, 5.4% QoQ, were below our estimate of | 8198 crore, mainly on account of lower than estimated realisations Total volumes for the quarter were at 1823498 units, up 16% YoY, 4.5% QoQ. Motorcycle volumes (1572607 units) rose 15.8% YoY, 3% QoQ, while scooter volumes (250891 units) grew 45% YoY, 15%...

Hero MotoCorp (HMCL) has topped our estimates in 2QFY17, aided by higher-thanexpected performance on operating front on account of robust 15.8% yoy rise in volume resulting in higher-than-expected operating leverage benefit. Revenue Tops Our Estimates by 1.6% Revenue rose by 14.5% yoy to Rs78.0bn (vs. our estimate of 1.6%) owing to strong 15.8% yoy growth in volume. On the back of 176bps yoy growth in gross margin, strong volume growth and robust operating leverage, HMCL's EBITDA margin expanded by 150bps yoy to 17.6% (vs. our estimate of 16.4%). Other income increased by 36.6% yoy to Rs1.5bn (vs. our estimate of Rs1.3bn) during the quarter. Beating our estimate by 10.2%, HMCL's...

Q2FY17 Results: Revenues grew 16% YoY to Rs77 bn (vol. growth of 16%, with motorcycle growth of 12% and scooters rising 45%. Realization fell 1% as expected YoY to Rs42K/unit. HMCL's operational performance was excellent with EBITDA margins at 17.6% (est. of 15.9%), with gross margins increasing 204bps to 33.5%. OOther expenses rose 52bps, with selling expenses falling as a share of sales. PAT rose 28% to Rs10.0 bn, with a 37% increase in other income on IND-AS impact. Review: Dealer optimism along with a sharp festive base effect aided HMCL's helped boost HMCL's volume growth, although the HMCL underperformed the market due to low share in faster growing premium segments. For H2FY17, we expect volume growth of ~7%, as a high scooter base along...

Hero Motocorps (HMCL) 2QFY17 EBITDA at Rs 13.7bn ( 25% YoY) was above est led lower commodity costs and leap programme benefit (130bps in 1H). This alongwith lower ad spends (2.2% of sales in 1H) resulted in 100bps QoQ rise in EBITDA margin to 17.6%. APAT at Rs 10bn ( 28% YoY) was above estimates led by higher operating leverage.

four quarters. On the scooters side, YTD growth has been a hefty 47.3% for Hero, which is much higher than the scooters industry growth of 27% indicates a good market share gain. On the exports side, the likes of Hero's closest competitors Bajaj and TVS are facing the heat, Hero is fairly insulated due to its minimum presence there. However, ambitious plans to enter markets like Argentina, Ghana and Mexico may start delivering in a couple of years, at the time when overall macros in these exports countries are expected to improve. We now expect 11%...

Hero MotoCorp (HMCL) delivered strong Q2FY17 performance, as operating (EBIDTA) margins expanded 147bpsYoY/93bps QoQ in the quarter. Its Revenue/EBIDTA/adj PAT grew 14.5%/25%/27.7% YoY and 5.4%/11.3%/13.7% QoQ to Rs 77.96bn/Rs 13.7bn/Rs 10.04bn, as against our estimate of Rs 80.0bn/Rs 12.8bn/Rs 9.2bn in Q2FY17.

ICICI Securities Ltd | Retail Equity Research Hero MotoCorp (HMCL) reported Q1FY17 numbers that were higher than our estimates on the operational front. Revenues at | 7399 crore, up 7.2% YoY, down 1.4% QoQ, came in below our estimates...

Q1FY17 Results: Revenues grew a modest 7% YoY to Rs74bn (vol. growth of 6%, with motorcycle growth of 3.4% and scooters rising 30%. Realization rose 1% YoY to Rs42K/unit. HMCL's operational performance was excellent with EBITDA margins at 16.6% (highest since Q4FY10), with gross margins...

Hero MotoCorp (HMCL) has reported marginally higher-than-expected results in 1QFY17 on account of better than expected expansion in gross margin. While Revenue came in 3.1% below estimate the reported PAT was 4.6% ahead of our estimate on the back of decent operating performance, which can be attributed to 205bps yoy expansion in...

Key highlights: Strong numbers with positive operating leverage and lower promotions aided an unanticipated margin improvement. Management remains optimistic on demand outlook in Q2FY17, as normal monsoons should lead revival in otherwise languishing rural sales.They increase their estimates by 4%/7% for FY17/18 on better margin performance and retain our Buy rating with a revised target price of Rs 3,750 (Rs 3,260 earlier);Phillip Capital now value Hero at 17x our FY18 EPS (16x earlier) – have upped the target multiple on strong volume outlook and decent margin performance.They retain their Buy rating with a revised target price of Rs 3,750.