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Hero MotoCorp Share Price: Hero MotoCorp shares climbed over 4 per cent to a fresh 52-week high on Monday after multiple domestic and global brokerages turned optimistic on sustained demand momentum, a strong festive recovery and improving margin visibility for India’s largest two-wheeler maker.

The stock rose as much as 4.08 per cent to Rs 5,764.50 around 12:54 pm, outperforming the Sensex, which inched up 0.34 per cent.

The latest rally follows a series of positive assessments on Hero MotoCorp’s September-quarter performance. Nomura said Hero delivered a “steady” Q2, with revenue of Rs 12,110 crore, up around 16 per cent year-on-year, and an EBITDA margin of 15 per cent, broadly in line with estimates. While average selling prices were marginally below expectations, the brokerage highlighted disciplined cost control, including lower staff costs and stable raw material expenses.

Nomura noted management's confidence in outperforming industry growth in the second half of FY26, supported by stronger rural demand, a solid festive season and the lowest inventory levels in five years. The brokerage expects gradual improvements in the EV business as component costs fall, PLI incentives flow in and price hikes take effect. However, it flagged mandatory ABS implementation as a downside risk for the crucial 100cc segment. Nomura maintained a ‘Neutral’ rating and raised its target price to Rs 5,817 from Rs 5,595.

JM Financial turned more constructive after Hero’s Q2 EBITDA margin came in at 15 per cent, 30 bps ahead of its estimates, supported by operating leverage and an improved ICE margin of 17.7 per cent. The brokerage noted that realisations rose 4 per cent year-on-year, aided by a richer product mix and steady pricing.

It pointed to a visible uptick in post-festive demand and sharply improved working capital management, with receivable days dropping from 30 to 12. JM Financial expects the domestic two-wheeler industry to grow 8–10 per cent in H2, backed by GST cuts, rural recovery, monsoon normalisation and easing inflation. The brokerage upgraded its target price to Rs 6,650 (Rs 5,250 earlier) and reiterated ‘Buy’.

Emkay Global highlighted continued market share gains for Hero, with Q2 volumes rising 11 per cent year-on-year and ASPs up 4 per cent. Festive retail sales crossed 1 million units in October, pushing Hero’s festive market share to 31.6 per cent, up from 25 per cent in the previous quarter. While the firm expects GST-led affordability to support near-term volumes, it reiterated medium-term risks from faster electrification and maintained an ‘Add’ rating with a target price of Rs 6,000.

Choice Broking upgraded the stock to ‘Add’ from ‘Reduce’, citing structural tailwinds and margin strength despite ongoing EV investments. It noted Hero delivered its highest-ever quarterly performance in Q2FY26, with ICE margins expanding 121 bps to 17.7 per cent. First-time buyers accounted for 81 per cent of festive sales, while the Vida electric lineup reached an 11.7 per cent share. Choice set a new target price of Rs 5,710 (Rs 5,350 earlier).

Senior Sub-editor at Zee Business English

shweta.shukla@India.com

Shweta Birendra Shukla is a journalist covering the stock market and corporate aff