Hero MotoCorp share prices declines 5% : 4 reasons why Jefferies sees more than 20% upside for the stock
Hero MotoCorp share price declined more than 4% on Monday during intraday trades. Hero MotoCorp had reported its December quarter financial performance on Friday post market hours. Hero MotoCorp had seen its profit after tax (PAT) rise 51% to ₹1,073 crore.
The company further had announced an interim dividend of ₹100 per share. Analysts at Jefferies India Pvt Ltd continue to like Hero as they believe the Indian two wheeler industry is poised for a strong cyclical recovery. Hero's market share decline in two wheelers and adverse demand profile shifts are concerns, although any potential success in premium bikes and EVs can enhance its growth outlook, said analysts at Jefferies.
They have raised their target price to ₹5650 for Hero Motocorp trading at ₹4670 levels indicating more than 20% upside for the stock. Four key reasons why Jefferies sees more than 20% upside for the stock- Also Read- LIC share price surges over 6%, brokerages raise target price on robust Q3 results; will the rally continue? 3. Market share concerns and adverse demand profile shift: Hero' MotoCorp's two-wheeler wholesale market share had slipped from average 36% in FY18-22 to 30% in 9MFY24.
Over this period, Hero has gained market share in 75-110cc motorcycles from 74% to 77%, but its share has slipped from 39% to 18% in 110-125cc bikes,. Also from 10% to 7% in ICE scooters. Adverse demand profile shift also impacted Hero as share of 75-110cc bikes in industry fell 5ppt over this period, while that of 110cc+ bikes and Electric Vehicles scooters rose.
Also Read- NHPC share price declines 10% ahead of Q3 results today. Should you Buy, Sell or Hold the stock? 4. Focus on premium bikes and EVs- Hero MotoCorp, at its recent investor day, highlighted a
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