Revenue from operations in the reporting period rose 11% YoY to Rs 10463 crore.
The company reported an EBITDA of Rs 1516 crore in the reporting period, which was up about 14% YoY. Margins for the same period improved 40 bps to 14.5%.
The company also reported its highest-ever quarterly revenue from part, accessories, and merchandising at Rs 1456 crore.
Here is what analysts say about the stock post its Q2 results:
Nomura: Buy | Target price: Rs 5,805
Nomura has maintained a Buy rating on Hero MotoCorp, raising the target price to Rs 5,805 from Rs 5,663, reflecting a potential upside of 26% from the current market price of Rs 4,604. The brokerage highlights rural market improvement as a key catalyst for growth.Hero MotoCorp’s Q2 results met expectations, showing healthy earnings growth and attractive valuations, with room for margin improvement. Nomura expects the two-wheeler (2W) industry to grow by 10% over FY25-26, supported by favorable monsoon conditions and a rural market recovery.
Motilal Oswal: Buy| Target price: Rs 5,420
Motilal Oswal expects HMCL to deliver a volume CAGR of 7.5% over FY25-27E, driven by new launches in the 125cc, scooters, and premium segments and a ramp-up in exports. HMCL will also benefit from a gradual rural recovery, given strong brand equity in the economy and executive segments.
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Nuvama: Buy| Target price: Rs 6,200
The company is well-placed to benefit from the 2W industry upcycle in rural/urban areas with strong brands, recent launches such as Xtreme 125R, and upcoming variants such as Vida Z EV in 2.2-4.4KWH range, Xpluse 210, Xtreme 250R, Karizma XMR 250 and Xoom 125/160.
HMCL is a key beneficiary of the likely uptick in rural demand owing to its wide network.
Choice Broking:
The domestic brokerage firm expects HMCL to benefit from rural recovery on the expectation of normal monsoon, rural recovery, and traction in the entry-level bikes by new customers. Further, as a long-term strategy road map such as a showroom revamp, and upgradation of the portfolio with new launches will support volume growth better than the industry.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)