Hero MotoCorp Ltd. share price target

Hero Motocorp (HMCL) reported 3QFY16 result in line with estimate. While reported EBIDTA margin was 20bps ahead of estimate due to 3.2% beat in revenue estimate, PAT came in line with estimate due to marginally higher than expected tax rate and...

With gradual recovery in the rural economy, falling interest rate and new product launches scheduled by the company is likely to Relative performance chart (one year)...

9 Aims to add 7075bps to margins due to its LEAP' programme in FY16. Has already achievedRs2.5bn(annualisedrate)ofsavingsvs.targetofRs2bnfromtheprogramme. Inventoryincreasedduetofestiveseasonbuildup;nowstandsat67weeks...

Hero Motocorps (HMCL) 1QFY16 APAT at Rs 7.5bn ( 33% YoY, 19% QoQ) beat our and consensus estimates by ~8-10%.

much ahead of our estimates of 13.5% mainly due to (1) lower raw material prices,(2) benefits of excise roll back,and (3) cost cutting program Leap'. Revenues fell 1% yoy to Rs69.6bn and were marginally below our estimates. EBITDA grew 11% yoy and was...

Buy Hero MotoCorp at CMP and add on dips to Rs 2,122 - Rs 2,201

Hero Motocorps (HMCL) 4QFY15 APAT was largely inline with consensus estimates. While gross margin saw solid 150 bps QoQ improvement, HMCL has had to increase A&P; spends to drive volumes in a sluggish market. Upfront spends towards its foray into new international markets is also weighing on its margins. HMCL hopes to continue to derive cost savings with a projected Rs 2 to 2.5bn saving per annum in FY16/FY17 (Rs 3.2bn in FY15).

Buy at Rs 2,728.5 and add on dips to Rs 2,478 - 2,560 for target of Rs 3,056 in 1 quarter