Hero MotoCorp Bolsters Electric Foothold—Here's What Morgan Stanley Thinks

Hero MotoCorp Ltd.'s launch of the Vida V2 series is pivotal for the bike maker to secure a stronghold in the evolving electric vehicle market, Morgan Stanley said. The company's share in the current electric two-wheeler market stands at a modest 6% as of November 2024, the brokerage said.

Morgan Stanley values Hero's EV business at four times its June 2026 estimated EV/sales. The brokerage warns, however, that failure to gain traction in the EV segment or pass on cost advantages to consumers could hinder Hero's momentum.

Share price of Hero MotoCorp. rose as much as 0.91% to Rs 4,678.05 apiece. It pared gains to trade 0.35% higher at Rs 4,652.20 apiece, as of 09:30 a.m., compared to a 0.21% advance in the NSE Nifty 50.

The stock has risen 22.21% on a year-to-date basis. The relative strength index was at 35.14.

Out of 44 analysts tracking the company, 30 maintain a 'buy' rating, seven recommend a 'hold' and seven suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 13.1%.