Hero MotoCorp vs Eicher Motors: Which 2W stock looks better after Q4 performance?

Stocks in focus after Q4FY25 results: Hero MotoCorp and Eicher Motors, the country’s two leading two-wheeler manufacturers in their respective segments, announced their March quarter results last week, which came in line with analysts' estimates. The performance was supported by higher volumes, improved average selling prices (ASP), a richer product mix, and increased exports.

Following the company's financial performance, analysts largely retained their optimistic outlook on both companies. They expect Hero MotoCorp to benefit from the government's recent initiatives aimed at boosting rural income, the rise in disposable income announced in the Union Budget, and the ongoing marriage season—factors likely to drive sales in rural India, where the company enjoys strong market positioning.

Meanwhile, Eicher Motors is also expected to gain from the gradual recovery in the >350cc motorcycle and export segments, along with support from recent product launches.

Axis Securities has retained its 'buy' rating on Hero MotoCorp with a target price of ₹5,030. The brokerage valued the stock at 17x core FY27E EPS (versus 19x earlier), factoring in market share loss in FY25. It also includes Hero’s 38% stake in Ather Energy and a 1x FY24 P/B valuation for Hero FinCorp, leading to a revised target price of ₹5,030 (down from ₹5,285 earlier).

"We are closely monitoring Hero’s roadmap for its EV product portfolio, its strategy in the mid-weight motorcycle segment amidst rising competition, and its expansion into new international markets," Axis Securities added.

Motilal Oswal has also maintained a 'buy' rating with a target price of ₹4,761. The brokerage expects Hero MotoCorp to deliver a 5% volume CAGR over FY25–27, supported by new product launches and a ramp-up in exports.

Japanese brokerage firm, Nomura has adjusted its target price slightly, raising it to ₹4,614 from ₹4,594 while maintaining a 'buy' rating. JM Financial has re-initiated coverage on Hero MotoCorp following the company's March quarter performance, with a 'buy' call and a target price of ₹4,700.

Nomura has revised its target price for Eicher Motors to ₹4,560 from ₹4,625 while maintaining a 'reduce' rating. Jefferies, on the other hand, lowered its target to ₹6,500 from ₹6,700 but retained a 'buy' rating

Citi maintained its 'buy' rating on the stock and raised the target price to ₹6,200, which is higher than the stock's recent record high of ₹5,906 apiece. Meanwhile, HSBC kept a 'hold' rating with a price target of ₹5,300.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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