Hero MotoCorp Ltd., incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 56811.50 Crore) operating in Auto sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 8758.01 Crore, down -12.70 % from last quarter Total Income of Rs 10032.61 Crore and up 34.93 % from last year same quarter Total Income of Rs 6490.54 Crore. Company reported net profit after tax of Rs 847.53 Crore in latest quarter.
Investment Rationale
The stock currently trades ~16x/13.6x FY22E/FY23E EPS. It values HMCL at 16x Mar’23E EPS owing to volume uncertainty due to the second COVID wave and risk of electrification. It maintains Buy rating with a TP of INR3,500 per share.
Promoter/FII Holdings
Promoters held 34.8 per cent stake in the company as of March 31, 2021, while FIIs held 37.2 per cent, DIIs 18.7 per cent and public and others 9.4 per cent.
