Amidst the early trading session on Monday, Hero MotoCorp’s stock saw a remarkable surge of more than 6%, driven by the unveiling of its Q4 results, which surpassed expectations. The stock soared by 6.25%, hitting an intra-day pinnacle of Rs 4,922 per share on the NSE.
On the 8th of May, Hero MotoCorp disclosed an 18% year-on-year (YoY) escalation in its autonomous net income, amounting to Rs 1,016 crore compared to Rs 858.93 crore registered in the analogous period of the previous year.
Revenue generated from standalone operations during the quarter escalated by 14% to Rs 9,519 crore from the previous year’s Rs 8,306.78 crore reported in the corresponding quarter.
In Q4FY24, the company documented sales of 13.92 lakh units of motorcycles and scooters, a noteworthy surge from the 12.70 lakh units sold in Q4FY23. Additionally, the aggregate units sold for the entire fiscal year 2024 reached 56.21 lakh, signifying an upsurge from the 53.29 lakh units sold in FY23.
Perspectives from Brokerages on Hero MotoCorp: Motilal Oswal’s Take on Hero MotoCorp: Motilal Oswal has reaffirmed its ‘BUY’ stance on Hero MotoCorp, the foremost manufacturer of motorcycles and scooters globally. They have established a target price of Rs 5,320, reflecting an 18x FY26E EPS in addition to Rs 137 for Hero FinCorp and Rs 132 for Ather following the application of a 20% holding company deduction.
Hero MotoCorp’s performance in the fourth quarter of FY24 has been characterized as meeting anticipations. Salient highlights include gross margins standing at 33.6%, slightly exceeding the anticipated figure of 32.7%.
An EBITDA margin of 14.3%, aligning with expectations, marks a noteworthy enhancement of 130 basis points YoY despite challenges such as increased other operating expenses, particularly attributed to EV spending.
