Hero MotoCorp Ltd.

NSE: HEROMOTOCO · 2/3 Wheelers

52W Range₹4,672 ₹6,389

Snapshot

Unlock Hero MotoCorp Ltd.'s vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

Hero MotoCorp Limited is a leading manufacturer of motorized two-wheelers, including motorcycles and scooters, along with spare parts and accessories. The company operates globally across Asia, Latin America, Africa, and the Middle East.

Business Model

The company generates revenue primarily through the sale of two-wheeler vehicles and associated spare parts. It leverages an extensive distribution network and is currently expanding into the electric mobility segment through strategic partnerships.

Growth Outlook

Growth is expected to be driven by the transition toward sustainable electric mobility, supported by a strategic partnership with Gogoro Inc. to enhance the company's electric vehicle ecosystem in India.

Key Risks

  • Commodity Price Volatility. Fluctuations in the prices of raw materials like steel, aluminium, and precious metals can significantly impact manufacturing margins.
  • Intense Market Competition. The two-wheeler segment in India faces aggressive competition from both established domestic players and new entrants in the electric vehicle space.
  • Regulatory and Environmental Shifts. Stricter emission norms and government policies regarding internal combustion engines may necessitate rapid and costly technological transitions.
  • Geopolitical and Currency Risks. As an exporter to emerging markets in Africa and Latin America, the company is exposed to currency fluctuations and regional political instability.

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Key Metrics

REVENUE

₹50,810 Cr

TTM · consolidated

+25.6%YoY

NET PROFIT

₹5,488 Cr

TTM · consolidated

+8.7%YoY

EPS

₹272.34

TTM · consolidated

+8.1%YoY

RETURN ON EQUITY

26.8%

TTM · consolidated

+0.6 ppYoY

RETURN ON CAPITAL EMPLOYED

34.2%

TTM · consolidated

+4.5 ppYoY

P/E

19.5x

Q1 FY27 · consolidated

19.5 vs 30.0x5Y avg

EV/EBITDA

12.3x

Q1 FY27 · consolidated

12.3 vs 19.0x5Y avg

EBITDA MARGIN

16.9%

TTM · consolidated

-0.5 ppYoY

NET PROFIT MARGIN

10.8%

Q1 FY27 · consolidated

-6.7 ppYoY

DEBT TO EQUITY

0.0x

Q1 FY27 · consolidated

+0.00xYoY

Peers · 2/3 Wheelers

CompanyMkt CapP/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
Hero MotoCorp Ltd.HEROMOTOCO
₹1.06L Cr19.4612.3325.6%16.9%26.8%34.2%-1.0%
Eicher Motors Ltd.EICHERMOT
₹2.09L Cr36.2627.2828.1%30.7%24.9%26.8%+18.8%
TVS Motor Company Ltd.TVSMOTOR
₹1.96L Cr57.2824.6830.2%15.1%39.9%31.4%+20.4%
Ather Energy Ltd.ATHERENERG
₹60,686 Cr-155.75-431.93-3.3%-25.4%-14.6%+225.2%
Ola Electric Mobility Ltd.OLAELEC
₹17,681 Cr-9.72-26.24-49.2%-40.0%-41.0%-22.4%-40.8%
Zelio E-MobilityZELIO
₹1,859 Cr11.0%

As of Q1 FY27

Financials