Hero Motors share price jumped nearly 10% on Thursday, 1 October, touching a fresh high of ₹167.45 on the BSE. Hero Motors share price has risen 104% from its IPO price of ₹82. The company’s market capitalisation stood at ₹7,564.96 crore so far today.
Meanwhile, the company held its 27th Annual General Meeting (AGM), where shareholders considered and adopted the audited financial statements, including the consolidated financial statements, for the financial year ended 31 March 2026, along with the reports of the Board of Directors and auditors.
The Chairman stated that the results would be declared upon receipt of the consolidated report from the Scrutinizer, within two working days or three days from the conclusion of the AGM, whichever is earlier.
Hero Motors share price was in focus on Wednesday following a bulk deal executed on Monday, 28 September. According to BSE data, Irage Broking Services LLP bought 34,01,332 shares at ₹135.70 apiece, while it sold 12,12,381 shares at ₹134.93 per share.
Hero Motors made a muted debut on 23 September, with the stock opening at ₹82.10 on the BSE, down 2.26% from its issue price of ₹84. However, the stock staged a sharp recovery during the session and ended at ₹98.51, marking a 17.27% gain over the issue price.
On the NSE, the shares opened at ₹82, a 2.38% discount to the issue price, before closing at ₹98.40, up 17.14%.
Hero Motors caters to global auto OEMs
Hero Motors is an automotive technology company engaged in designing, developing, manufacturing and supplying engineered powertrain solutions to automotive original equipment manufacturers (OEMs) across the US, Europe, India and the ASEAN region.
Its customer base includes global companies such as BMW AG, Ducati Motor Holding SPA, Enviolo International Inc, Formula Motorsport Ltd and Hummingbird EV.
EV exposure provides a long-term growth opportunity
Hero Motors’ exposure to the growing electric vehicle (EV) market and its presence in powertrain solutions have drawn investor attention following its stock market debut. However, experts have highlighted valuation, profitability and near-term price stability as key factors to watch.
Dr Ravi Singh, Chief Research Officer at Master Capital Services, noted that India’s two-wheeler industry is projected to grow at a 6–7% CAGR to 29–31 million units by FY31. The gears and transmissions market is expected to expand at 6–8% between CY25 and CY31, while the electric-drive motor market is projected to grow at a much faster 28–32% CAGR through CY31.
However, Singh cautioned that the stock’s weak listing could keep near-term sentiment under pressure, potentially prompting fresh investors to wait for greater price stability. He said the longer-term outlook would depend on the company’s ability to sustain growth, improve profitability and strengthen cash generation.
High valuation remains a key concern
Shivani Nyati, Head of Wealth at Swastika Investmart, said Hero Motors benefits from its strong position in powertrain solutions and the EV segment’s growth potential. However, she flagged the stock’s valuation of around 69–74x P/E, significantly above the peer average of 50.2x.
While Hero Motors’ return on net worth (RoNW) has improved to 8.53% and its EBITDA margin stands at around 10.2%, Nyati noted that both remain below those of key peers. She also highlighted high customer concentration as an additional risk.
Given the strong business prospects but limited valuation cushion, Nyati maintained a Neutral post-listing view and suggested that investors wait for better valuations or price consolidation before considering fresh positions.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
