Hero MotoCorp share price in focus: Hero MotoCorp, one of the world’s largest two-wheeler manufacturers, saw strong buying interest in Monday’s session, November 17, with the stock gaining another 4% to hit a fresh all-time high of ₹5,754 apiece as brokerages remain bullish on the stock following the company’s September quarter numbers.
India’s largest two-wheeler maker reported a 24% year-on-year jump in consolidated net profit to ₹1,321 crore in Q2, while revenue rose 16% to ₹12,458 crore, the highest for the company in any single quarter. The company’s EBITDA margin expanded by 55 basis points to 15% during the quarter, supported by growth in volumes.
The company had earlier reported that sales of motorcycles and scooters increased a healthy 11% to 1.69 million units in the quarter, boosted by cuts in goods and services tax (GST) on entry-level bikes as well as festive demand.
Within this, domestic sales rose 8% year-on-year to 1.58 million units, while international sales, aided by expansion into various European markets, surged 77% to 111,584 units.
Realisations rose about 4% YoY, aided by a better mix and pricing. Management said post-festive demand remains strong, with inventory at multi-year lows and receivables reduced to 12 days from 30.
The company expects the domestic 2W industry to grow 8–10% in 2HFY26, supported by GST cuts, rising first-time buyers, rural recovery, a good monsoon, RBI rate cuts, income tax reductions, and lower inflation. It aims to outperform the industry in both domestic and export markets, driven by new launches and expansion into new regions, and has maintained its long-term EBITDA margin guidance of 14–16%.
JM Financial retains ‘Buy’ rating on Hero MotoCorp | target price: ₹6,650
The brokerage revised its estimates upward, driven by new launches (both in ICE and EVs) and improved operating efficiency. The brokerage has increased the volume estimates for FY26E and FY27E by 0.3% and 3%, respectively. As a result, the brokerage has raised the EPS estimates by 1.6% and 4.8%.
The brokerage has also rolled forward its valuation and now applies a 19x PE multiple (versus 17x earlier) on average FY27E/28E EPS to arrive at a target price of ₹6,650, up from the previous target of ₹5,250. It maintains a buy rating on the stock.
Motilal Oswal keeps ‘Buy’ rating on Hero MotoCorp | Target price: ₹6,500
Motilal Oswal also retained its buy rating with a target price of ₹6,500. The brokerage expects HMCL to deliver a volume CAGR of around 6% over FY26–28, supported by new launches and a ramp-up in exports. It also expects the company to benefit from a gradual rural recovery, given its strong brand equity in the economy and executive motorcycle segments.
Morgan Stanley upgrades to ‘Overweight’ on Hero MotoCorp | Target price: ₹6,471
Global brokerage Morgan Stanley upgraded the stock to overweight with a target price of ₹6,471. The firm believes Hero MotoCorp’s market-share decline has bottomed out, highlighting gains in scooters, EVs, and premium motorcycles. It noted that GST-led price cuts are reviving entry-level demand, with festive-season volumes rising 17%.
Morgan Stanley expects margins to expand toward 15.3% by FY28, supported by an improved product mix and lower EV losses. It also noted that valuations remain attractive at 16.8x FY27 P/E compared with peers, while a dividend yield above 3% provides further support. The brokerage, however, flagged the implementation of ABS norms in FY27 as a key risk.
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