News

Hero MotoCorp shares have more fuel to run as new launches, rural recovery may spur growth, analysts sayOut of the 42 analysts who have coverage on Hero MotoCorp, 25 of them have a 'Buy' rating, 10 say 'Hold', while seven others have a 'Sell' recommendation.By Meghna Sen   May 15, 2025, 12:48:22 PM IST (Published)3 Min ReadShares of two-wheeler manufacturer Hero MotoCorp Ltd. climbed as much as 5% on Thursday, May 15, following the company's strong operational performance in the March quarter.

Out of the 42 analysts who have coverage on Hero MotoCorp, 25 of them have a 'Buy' rating, 10 say 'Hold', while seven others have a 'Sell' recommendation.

Brokerage firm JM Financial has re-initiated its coverage on Hero MotoCorp with a 'Buy' rating and a price target of ₹4,700.

The brokerage has factored in a moderate volume growth of 5% and 6% for FY26 and FY27.

Hero MotoCorp expects domestic two-wheeler industry to grow by 6-7% in FY26, led by rural recovery, healthy monsoon prediction, reduction in income tax, and increased government spending.

The management believes that Hero MotoCorp will outperform the underlying industry in both the domestic and exports segments, led by its upcoming product launches and entry into new geographies.

On the margins front, the management has maintained its long-term guidance of 14-16%. However, ramp-up of EV volumes will be a drag on margins to some extent, JM Financial said in its note.

Nuvama Institutional Equities has retained a 'Buy' rating with an unchanged price target of ₹5,100.

The brokerage said that Hero MotoCorp is well-placed to benefit from rural demand owing to its wide network.

Recent launches—Xpulse 210, Xtreme 250R, Xoom 125 and Destini 125 — are aimed at bolstering its position in the premium motorcycles and scooter markets. Furthermore, the company plans to launch two affordable E-2Ws in H1FY26E.

Kotak Institutional Equities expects the two-wheeler industry growth momentum to moderate in FY26, led by the motorcycle segment. Also, it expects limited benefits to accrue to Hero Moto due to its higher exposure to the 110 cc segment.

This, coupled with limited market share gains in premium and scooter segments, will weigh on the volume growth trajectory of the company, the brokerage said, while retaining a 'Sell' rating on the stock. However, Kotak has upped its price target to ₹3,500 from ₹3,400 earlier.

The management, during the post-earnings call, said a strong wedding season in May and June is expected to boost two-wheeler sales.

They also said that realisation improved largely due to a better product mix, with two-wheelers contributing two-thirds of the sequential improvement.

Looking ahead, the management expressed confidence in outperforming industry growth, driven by new product launches. They expect the industry to grow by 6–7% in FY26.

Additional tailwinds such as income tax relief and a higher number of marriage dates in 2025 are also expected to support demand.

Shares of Hero MotoCorp are trading 4.45% higher on Thursday at ₹4,248, having corrected 32% from its peak of ₹6,245.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsHero MotoCorpHero MotoCorp earningsHero MotoCorp share priceshare market today