Hero MotoCorp Share Price rose 1.5 percent in early trade on Nov. 15 after the company announced in the September quarter figures last week.

Heroes Motocorp on Friday reported a standalone profit after tax (PAT) of Rs 794 crore, down 17 per cent from Rs 953 crore pat on the corresponding quarter last year. However sequentially, independent pat jumped 117 percent from Rs 365 crore in the last quarter.

Standalone revenue at Rs 8453.4 crore decreased 10 per cent from Rs 9367 crore recorded in the corresponding quarter last year. Independent revenue higher by 54 per cent from Rs 5,487 crore reported in the previous quarter.

This is what the broker on the stock and the company after the September quarter earnings:
Nomura.

Broking house has maintained a rating of ‘neutral’ on the stock with a price target at Rs 2,981 per share.

Demand for bulk segments like two-wheeler can face the pressure, he said.

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The research house has maintained a rating of ‘reduce’ with a target at Rs 2,800.

EBITDA above forecasts on gross margin better than expected and higher ASPS. The company hopes to maintain profitability for FY23 and a gradual recovery in domestic volume two-wheeler, he said.

Weaker presence in scooters, motorcycles and export premium is a problem, it shows.

Jefferies.

The research firm has maintained its rating of ‘hold’ with a target at Rs 3,000 after the EBITDA / Q2 profit of the company decreased 17 percent yoy on lower volume.

It has been reported gross profit and EBITDA almost all the time with a per vehicle. Price hike and internal cost controls helped offset input cost pressures.

Jefferies expects a gradual revival of abnormal cycle trough.

Prabhudas Lilladher.

“We believe the company will benefit in the medium to long term by (1) focusing on increasing penetration of exports, (2) an increase in sentiment rural boosted demand for the model segment entry and (3) further savings to be achieved through cost savings, “the broker said.

However, success in EVS remains a major concern for the company and a key factor to monitor, he said.

“We have changed our forecast upwards by 7 percent / 10 percent for FY23 / 24 to factor in the performance of 2QFY22 strong and maintain ‘Buy’ with a target price of Rs 3,115 on 15x SEP23E EPS (previously 17x) be a risk factor for EVs,” it said.

MOTALAL OSWAL.

Motocorp hero is a good proxy to the recovery of the rural market, with the castle in the 100cc motorcycle segment. It has low susceptibility to EV because only get 8 percent of the volume of the scooter – 100cc core motor business less susceptible to interference EV.

Stock trading at 17.1x / 13.7x FY22E / FY23E EPS. “Maintain ‘Buy’ with a target price of Rs 3,100,” he said.

At 9:16 am, Hero Motocorp quoting at Rs 2,722.60, up Rs 39.55, or 1.47 percent, on the BSE.