Hero Motors shares were locked in at 20% upper circuit on Friday, extending its rally to the second day after making its debut in the Indian stock market. The newly listed stock surged 20% to a fresh high of Rs 141.85 apiece on the BSE.
The market capitalisation of Hero Motors surged to Rs 6,443.05 crore on the BSE.
Hero Motors shares had made a muted Dalal Street debut on Wednesday, September 23. The stock was listed at Rs 82 on the NSE, a discount of 2.38% to the issue price of Rs 84 apiece.
On BSE, Hero Motors shares were listed with 2.26% discount at Rs 82.10 apiece.
However, the stock witnessing a strong buying interest after the listing and is now up nearly 73% from its listing price.
Hero Motors is an automotive technology company that designs and manufactures powertrain solutions for global OEMs across the US, Europe, India, and ASEAN.
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The initial public offering (IPO) of Hero Motors was open for subscription from September 16 to September 18.
Hero Motors IPO received a strong 6.66 times subscription overall during the bidding period.
The company raised Rs 1,000 crore from the book-building issue which was a combination of fresh issue of 7.14 crore equity shares worth Rs 600 crore, and an offer-for-sale (OFS) of 4.76 crore shares aggregating to Rs 400 crore.
Hero Motors delivered Revenue, EBITDA and PAT CAGR of 5.7%, 34.3% and 55.5%, respectively, during FY24-FY26, reflecting strong profitability growth despite modest revenue expansion.
According to Shivani Nyati, Head of Wealth at Swastika Investmart, while the company benefits from a strong position in powertrain solutions and the growth potential of EVs, its valuation at around 69–74x P/E remains significantly higher than the peer average of 50.2x.
“Although RoNW has improved to 8.53% and EBITDA margin to around 10.2%, both remain below key peers, while high customer concentration adds another risk. Given the strong business prospects but limited valuation cushion, our post-listing view is Neutral,” said Nyati.
At 11:10 AM, Hero Motors share price was still locked at 20% upper circuit of Rs 141.85 apiece on the BSE.
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