Hero MotoCorp’s Q2 FY26 PAT at Rs 13.9 billion came in slightly below estimate of Rs 14.4 billion, largely due to lower other income. Margins expanded on the back of revenue growth and operational efficiencies.
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Motilal Oswal Report
We expect Hero MotoCorp Ltd. to deliver a volume CAGR of ~6% over FY26-28, driven by new launches and a ramp-up in exports. Hero MotoCorp will also benefit from a gradual rural recovery, given strong brand equity in the economy and executive segments.
We project a CAGR of ~8%/11%/12% in revenue/Ebitda/PAT over FY25-28.
At ~22.5x/19.6x FY26E/27E EPS, the stock appears attractively valued. We reiterate our Buy rating with a target price of Rs 6,503 (based on 20x Sep’27E EPS + Rs 141/397 for Hero FinCorp/Ather post-20% Holdco discount).
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