Hero MotoCorp jumps to 52-week high as analysts lift targets on Q2 strength

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Hero MotoCorp share hits 52-week high today: Hero MotoCorp shares surged nearly 4 per cent to a fresh 52-week high on Monday after a string of upbeat brokerage commentaries signalled sustained demand momentum, strong festive recovery, and improving margin visibility for India’s largest two-wheeler maker. 

 

The Hero MotoCorp stock rose as much as 3.95 per cent to ₹5,749 before trading 3.84 per cent higher at ₹5,743 around 11:30 am, outpacing the Sensex’s 0.15 per cent gain.

 

The rally followed a series of largely positive assessments from domestic as well as global brokerages, who pointed to Hero’s strong Q2 performance, the benefits of the recent GST cut on entry-level motorcycles, strengthening post-festive demand, and improving traction in the fast-growing electric scooter segment under the Vida brand.

 

Nomura said Hero’s September-quarter performance remained “steady”, with revenue of ₹12,110 crore rising ~16 per cent year-on-year (Y-o-Y) and Ebitda margin coming in at 15 per cent, in line with expectations. Although average selling prices (ASPs) marginally missed its estimates, the brokerage highlighted strong cost control, particularly lower staff costs and stable raw material expenses. 

 

Nomura analysts noted management’s confidence in outperforming industry growth in the second half (H2FY26), supported by buoyant rural demand, strong festive season momentum, and inventory now at its lowest in five years.

 

The brokerage expects the EV business to gradually improve as component costs fall, PLI incentives kick in and price hikes take effect. Yet it warned that mandatory ABS implementation poses a downside risk for the 100cc segment – critical for Hero, given it forms 87 per cent of its domestic volumes. Thus, Nomura maintained a ‘Neutral’ rating while raising its target price to ₹5,817 (₹5,595 earlier).  ALSO READ | Engineers India shares gain 5% on strong Q2 numbers; Antique retains 'Buy' 

JM Financial turned more constructive after Hero’s 15 per cent Q2 margin came in 30 bps above its estimates, led by operating leverage and a stronger ICE margin of 17.7 per cent. The brokerage noted that realisations improved 4 per cent Y-o-Y, aided by a richer mix and steady pricing. It highlighted a tangible pick-up in post-festive demand, along with sharply improved working capital management – receivables dropping from 30 days to 12 days.

 

JM Financial expects the domestic two-wheeler industry to grow 8-10 per cent in the second half, supported by GST cuts, rural recovery, monsoon normalisation, tax relief and lower inflation. With Hero expected to outperform the market, the brokerage raised its earnings estimates and upgraded its target price to ₹6,650 (₹5,250 earlier), reiterating ‘Buy.’

 

Emkay Global flagged continued market share gains, with Hero’s Q2 volumes rising 11 per cent Y-o-Y and ASPs up 4 per cent. It noted festive retails surpassed 1 million units in October, with the company’s festive market share shooting up to 31.6 per cent from 25 per cent in the previous quarter. Emkay said GST-cut-driven momentum should support near-term growth but reiterated medium-term risks from accelerating electrification. It retained an ‘Add’ rating with a target price of ₹6,000.

 

Those at Choice Broking turned incrementally positive, upgrading the stock to ‘Add’ from ‘Reduce,’ citing structural tailwinds and margin strength despite heavy EV investments. It highlighted that Hero delivered its highest-ever quarterly performance in Q2FY26, while the ICE business saw Ebitda margin expand 121 bps to 17.7 per cent. 

 

Choice said first-time buyers accounted for 81 per cent of festive sales – a strong signal of new-customer expansion – while the Vida electric lineup continued to climb, reaching an 11.7 per cent market share. Its new target price stands at ₹5,710 (₹5,350 earlier).  ALSO READ | SpiceJet shares soar 7% on plans to restructure liability by March 

Antique Stock Broking, which resumed coverage with a ‘Hold,’ said the core investment thesis for Hero remains robust given record profitability, rising market share in the entry-level segment and favourable industry tailwinds. 

 

But it argued that much of the near-term optimism has already been priced in, limiting valuation upside. Its target price stood at ₹5,700.

 

Despite the differing stock calls, from bullish (JM Financial, Choice, Emkay) to neutral (Nomura) and cautious (Antique), brokerages broadly converge on Hero’s strengthening demand outlook, GST-boosted affordability, festive revival, and improving EV traction. 

 

With margins steady and the industry cycle turning favourable, investors appear to be factoring in a more durable recovery for the two-wheeler major.