Hero MotoCorp’s shares are likely to be a hot topic on Friday after the company announced some impressive news. For the last three months of the year, Hero MotoCorp made a net profit of Rs 1,203 crore, which is 12% more than the same period last year when they made Rs 1,073 crore. This profit was even higher than what experts were predicting, which was Rs 1,122 crore.
Their total sales for the quarter increased by 5%, reaching Rs 10,211 crore, up from Rs 9,723 crore last year. This also exceeded analysts’ expectations, which estimated sales at Rs 10,152 crore. Hero MotoCorp reported that their revenue and profit for the first nine months of this financial year were the highest ever recorded!
EBITDA, which shows earnings before paying interest, taxes, and other costs, was Rs 1,476 crore for this quarter, up by 8%. They also sold 14.64 lakh motorcycles and scooters, slightly up from 14.60 lakh units in the same quarter last year. The company gained more market share in the popular 100cc and 125cc motorcycle segments thanks to models like the Splendor and Xtreme 125R.
The Chief Financial Officer, Vivek Anand, said that new products coming out soon will help them grow even more in the premium and scooter markets. He also mentioned that the government budget for 2025, which includes tax breaks for middle-class people and support for farming, could help boost sales in the auto industry.
Should You Buy, Sell, or Hold Hero MotoCorp’s Stock? Here’s What Experts Think:
– Jefferies keeps a ‘Buy’ rating for Hero MotoCorp, now targeting a price of Rs 5,075. They noted that the profit and revenue were better than expected due to higher selling prices and better profit margins.
– Citi also has a ‘Buy’ rating but has lowered the target price to Rs 5,400 from Rs 6,300. They think the latest results are good, but the market is competitive, and Hero MotoCorp’s market share might face some challenges. They also reduced their sales estimates for the company by 4% for the next few years.
(Disclaimer: The views and recommendations given by the experts are their own and do not represent the views of Niftystat.)
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