Hero MotoCorp’s fundamental analysis highlights key financial metrics, including a market capitalization of ₹1,07,281.03 crore, a PE ratio of 25.25, a debt-to-equity ratio of 0.03, and a return on equity (ROE) of 22%. These figures reflect the company’s financial health and strong market position.
Content:
- Hero MotoCorp Ltd Overview
- Hero MotoCorp Financial Results
- Hero MotoCorp Financial Analysis
- Hero MotoCorp Company Metrics
- Hero MotoCorp Stock Performance
- Hero MotoCorp Peer Comparison
- Hero MotoCorp Shareholding Pattern
- Hero MotoCorp History
- How To Invest In Hero MotoCorp Ltd Share?
- Hero MotoCorp Limited Fundamental Analysis – FAQs
Hero MotoCorp Ltd Overview
Hero MotoCorp Ltd is a leading Indian two-wheeler manufacturer, renowned for its motorcycles and scooters. The company is known for its extensive range of products, innovative engineering, and strong brand presence in the Indian and global markets.
The company has a market capitalization of ₹1,07,281.03 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading close to its 52-week high of ₹5,895, significantly above its 52-week low of ₹2,889, indicating strong investor confidence. The all-time high of the stock is ₹5,895, while the all-time low is ₹471.
Hero MotoCorp Financial Results
The company demonstrated strong financial growth from FY 22 to FY 24, with sales increasing from ₹29,551 crore to ₹37,789 crore and EBITDA rising from ₹4,000 crore to ₹6,204 crore. The company maintained a stable OPM and improved EPS over the years.
- Revenue Trend: Sales increased from ₹29,551 crore in FY 22 to ₹34,158 crore in FY 23, and further to ₹37,789 crore in FY 24, indicating robust revenue growth.
- Equity and Liabilities: The company’s equity and liabilities structure showcases financial stability and strategic management. The company effectively balances equity financing and manageable debt levels, ensuring sustainability and capital flexibility for growth initiatives.
- Profitability: Operating Profit Margin (OPM) remained stable at 12% in FY 22 and FY 23, and increased to 14% in FY 24, reflecting consistent operational efficiency and improved profitability.
- Earnings per Share (EPS): EPS increased from ₹115.96 in FY 22 to ₹140.62 in FY 23, and further to ₹187.36 in FY 24, indicating strong profit growth per share.
- Return on Net Worth (RoNW): RoNW improved from 15.66% in FY 22 to 17.42% in FY 23, and further to 22.06% in FY 24, indicating better returns on shareholders’ equity and increasing profitability.
- Financial Position: The company’s financial position strengthened with EBITDA increasing from ₹4,000 crore in FY 22 to ₹4,663 crore in FY 23, and further to ₹6,204 crore in FY 24, showcasing robust financial health and management.
Hero MotoCorp Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 37,789 | 34,158 | 29,551 |
| Expenses | 32,439 | 30,065 | 26,107 |
| Operating Profit | 5,350 | 4,094 | 3,445 |
| OPM % | 14 | 12 | 12 |
| Other Income | 694.55 | 569.01 | 555.01 |
| EBITDA | 6,204 | 4,663 | 4,000 |
| Interest | 76.37 | 104.88 | 53.1 |
| Depreciation | 757.36 | 697.39 | 689.52 |
| Profit Before Tax | 5,210 | 3,861 | 3,257 |
| Tax % | 25.87 | 27.55 | 22.38 |
| Net Profit | 3,742 | 2,800 | 2,329 |
All values in ₹ Crores.
Hero MotoCorp Company Metrics
Hero MotoCorp’s market cap is ₹1,07,281.03 crore, with a book value of ₹885 per share and face value of ₹2. It has a debt of ₹606 crore, EBITDA of ₹6,204 crore, dividend yield of 2.16%, and EPS of ₹187, showcasing strong profitability and asset utilization.
Market Capitalization: Represents the total market value of Hero MotoCorp’s outstanding shares, amounting to ₹1,07,281.03 crore.
Book Value: Hero MotoCorp has a book value of ₹885 per share, representing the net asset value of the company divided by the number of outstanding shares.
Face Value: The face value of Hero MotoCorp’s shares is ₹2.00, which is the nominal value of each share as stated on the share certificate.
Asset Turnover: Hero MotoCorp has an asset turnover ratio of 1.51, indicating the company’s efficiency in using its assets to generate revenue. This high ratio suggests effective asset utilization.
Total Debt: Hero MotoCorp has a debt of ₹606 crore, reflecting its financial leverage and obligations. Managing this debt effectively is crucial for the company’s long-term financial stability and growth.
EBITDA: Hero MotoCorp’s EBITDA increased from ₹4,000 crore in FY 22 to ₹4,663 crore in FY 23, and further to ₹6,204 crore in FY 24, indicating improving operational performance and profitability over these years.
Dividend Yield: Hero MotoCorp has a dividend yield of 2.16%, reflecting the annual dividend income relative to its current share price.
Earnings per Share (EPS): Hero MotoCorp has an EPS of ₹187, indicating the amount of profit attributed to each outstanding share of common stock, reflecting the company’s profitability for its shareholders.
Hero MotoCorp Stock Performance
Hero MotoCorp delivered impressive returns on investment with 76.4% over 1 year, 24.2% over 3 years, and 15.1% over 5 years, highlighting strong long-term performance and consistent profitability for investors.
| Period | Return on Investment (%) |
| 1 Year | 76.4 |
| 3 Years | 24.2 |
| 5 Years | 15.1 |
Example: If an investor had invested ₹1,000 in Hero MotoCorp’s stock:
1 year ago, their investment would be worth ₹1,764.
3 years ago, their investment would have grown to ₹1,242.
5 years ago, their investment would have increased to approximately ₹1,151.
This highlights strong long-term performance and consistent profitability for investors.
Hero MotoCorp Peer Comparison
Hero MotoCorp has a CMP of ₹5359, a market cap of ₹1,07,143.05 crore, a P/E of 25.25, and a dividend yield of 2.16%. Comparatively, Eicher Motors, TVS Motor, Ola Electric, Wardwizard Innovations, Urja Global, and Tunwal E-Motors show varied performance metrics with different market caps, P/E ratios, and returns.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| Eicher Motors | 4824.35 | 132192.24 | 31.58 | 24.23 | 152.8 | 44.03 | 31.14 | 1.06 |
| TVS Motor Co. | 2633.9 | 125136.61 | 73.14 | 26.55 | 36.06 | 91.69 | 14.68 | 0.31 |
| Hero Motocorp | 5359 | 107143.05 | 28.44 | 25.25 | 187.31 | 76.44 | 29.09 | 2.16 |
| Ola Electric | 118.14 | 52109.58 | 0 | 0 | -8.1 | 0 | -32.13 | 0 |
| Wardwizard Inno. | 54.75 | 1427.3 | 96.27 | 14.79 | 0.57 | 46.37 | 17.81 | 0.18 |
| Urja Global | 20.57 | 1080.86 | 410.97 | 1.18 | 0.05 | 105.37 | 1.87 | 0 |
| Tunwal E-Motors | 49.3 | 272.65 | 23.08 | 82.16 | 2.85 | 52.37 | 0 |
Hero MotoCorp Shareholding Pattern
Hero MotoCorp’s shareholding pattern from FY 2023 to FY 2024 shows promoters’ holdings slightly decreasing from 34.77% to 34.76%. FIIs increased from 27.01% to 28.93%, while DIIs slightly decreased from 27.86% to 27.76%, and retail and others’ holdings decreased from 10.36% to 8.55%.
| FY 2024 | FY 2023 | FY 2022 | |
| Promoters | 34.76 | 34.77 | 34.75 |
| FII | 28.93 | 27.01 | 29.22 |
| DII | 27.76 | 27.86 | 24.24 |
| Retail & others | 8.55 | 10.36 | 11.78 |
All values in %
Hero MotoCorp History
Hero MotoCorp, founded in 1984, was initially a joint venture between Hero Cycles of India and Honda of Japan. The company quickly became a leader in the Indian two-wheeler market, known for its reliable and fuel-efficient motorcycles and scooters.
In 2010, Hero and Honda parted ways, with Hero Group buying Honda’s 26% stake in the company. This led to the rebranding of the company from Hero Honda to Hero MotoCorp, marking a new era of independence and innovation.
Post the split, Hero MotoCorp expanded globally, entering new markets in Asia, Africa, and Latin America. The company set up manufacturing facilities in various countries, strengthening its position as a global two-wheeler manufacturer.
Hero MotoCorp has consistently focused on innovation, launching various new models and incorporating advanced technologies to meet the evolving needs of consumers. The company has also invested significantly in research and development to maintain its competitive edge.
Hero MotoCorp is committed to sustainability, with initiatives aimed at reducing its environmental impact. The company has introduced eco-friendly products, adopted green manufacturing practices, and invested in renewable energy, showcasing its dedication to corporate social responsibility and sustainable growth.
How To Invest In Hero MotoCorp Ltd Share?
Investing in Hero MotoCorp Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Hero MotoCorp Ltd shares and place your buy order.
Hero MotoCorp Limited Fundamental Analysis – FAQs
Hero MotoCorp’s fundamental analysis shows a market capitalization of ₹1,07,281.03 crore, a PE ratio of 25.25, a debt-to-equity ratio of 0.03, and an ROE of 22%, indicating strong financial health.
Hero MotoCorp Ltd has a market capitalization of ₹1,07,281.03 crore. The company manufactures, markets, and sells motorcycles and scooters, making it a major player in India’s two-wheeler industry.
Hero MotoCorp Limited is an Indian multinational motorcycle and scooter manufacturer, headquartered in New Delhi, renowned for its wide range of two-wheeler products.
Hero MotoCorp is primarily owned by the Munjal family, with Pawan Munjal serving as the Chairman and CEO.
The main shareholders of Hero MotoCorp include the Munjal family (promoters) at 34.76%, FIIs at 28.93%, DIIs at 27.76%, and retail and others at 8.55%.
Hero MotoCorp operates in the automotive industry, specifically focusing on the manufacturing of motorcycles and scooters.
To invest in Hero MotoCorp Ltd shares, open a trading account with a stockbroker, deposit funds, and purchase shares through the Bombay Stock Exchange (BSE) or National Stock Exchange (NSE).
Determining if Hero MotoCorp is overvalued or undervalued requires analyzing its current market price compared to its intrinsic value, considering factors like PE ratio, growth prospects, and industry comparisons. Based on its PE ratio of 25.25, Hero MotoCorp may be considered relatively high in valuation, suggesting investors should carefully evaluate its investment potential.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
