Hero MotoCorp is reporting a clear uptick in two‑wheeler sales after the recent GST rate cuts, and the company is betting on continued growth.
Strong post‑GST demand
The management says demand for motorcycles has picked up nicely and should stay strong. Rural buyers are showing more confidence, which is a good sign for the brand.
Growth targets for the second half
- Expecting the overall two‑wheeler market to grow 8‑10% in the coming months.
- Maintaining its volume‑growth guidance for the second half of the fiscal year.
Focus on the 125cc segment
Hero MotoCorp remains the leader in entry‑level bikes but wants to win back market share in the 125cc category. New models like the Glamour and Xtreme125R have been launched and are getting positive feedback.
Scooter and EV momentum
Both traditional ICE scooters and electric scooters are seeing better sales, helping the company diversify its product mix.
Export push
The firm continues to concentrate on its top ten export markets, which has helped revive overseas sales.
Financial outlook
Analysts project around 10% revenue growth, 12% EBITDA growth, and 13% profit after tax growth per year from FY25 to FY28.
Analyst recommendation
The stock is rated BUY with a target price of ₹6,782, based on a 20× earnings multiple for FY27 and a 20% discount for the holding company.
Disclaimer
Remember, this is just an overview, not a prediction. Do your own research and consider your financial situation before making any investment decisions.