Hero MotoCorp Ltd. share price target

Hero MotoCorp's (HMCL) Q3FY15 performance was below estimates on operational front. Its Revenue/EBIDTA fell 0.5%/8.5% YoY and 1.1%/12% QoQ respectively. Its PAT rose 11% YoY, but fell 24% QoQ. Company's EBIDTA margins came way below our as well as street's estimate at 12% (our Est was 14%) Its Other expenses rose 8.6% YoY and 10.2% QoQ to Rs 8bn, on account of higher promotional & brand building expenses in global market, part of which is non-recurring.

Hero Motocorp recorded Net sales of Rs. 6145.8cr which was up by 2% y-o-y on the back of slight increase in realization per unit by 1.8% although it was offset by...

Background: Hero MotoCorp is the largest two wheeler manufacturer in the World. The company was formed as a JV, promoted by Hero Cycles of India (promoters - Munjal Group) and Honda motors of Japan (26% stake). Honda has recently exited the JV. Hero's Indian market share is 45.2% (Motorcycle share - 56%) and 46% of its sales is from rural India. Hero sold 6.2 mn units in FY 12 & 80% of the volumes are from the 100cc Economy segment and is...

Background: Hero MotoCorp is the largest two wheeler manufacturer in the World. The company was formed as a JV, promoted by Hero Cycles of India (promoters - Munjal Group) and Honda motors of Japan (26% stake); Honda recently exited the JV. Hero's Indian market share is 45.2% (Motorcyle share - 56%) and 46% of its sales is from rural India. Hero sold 6.2 mn units in FY 12 & 80% of the volumes are from the 100cc Economy segment and is the market leader in that category. Its key models include Splendour...