Hero MotoCorp shares rally 12% in 8 days, eye record high; upside left?

Motilal Oswal Financial Services expects Hero MotoCorp to benefit from a gradual rural recovery, given strong brand equity in the economy and executive segments

Hero MotoCorp share price today

 

Shares of Hero MotoCorp (HMCL), the world's largest manufacturer of motorcycles and scooters, hit a fresh 52-week high of ₹5,916.60 on the BSE today, gaining 2 per cent in Wednesday's intraday trade.

 

In the past eight trading days, the market price of Hero MotoCorp stock has rallied 12 per cent. It is trading at its highest level since September 2024. Further, Hero Moto shares had hit a record high of ₹6,245 on September 24, 2024.

 

Thus far in calendar year 2025, Hero MotoCorp share price has outperformed the market by surging 40 per cent. In comparison, the BSE Sensex and BSE Auto index are up 8 per cent and 17 per cent, respectively, during the period.  READ LATEST STOCK MARKET UPDATES LIVE

Why is Hero MotoCorp stock in demand?

 

Buying interest is being seen in Hero MotoCorp shares ever since the com[any delivered its highest-ever quarterly performance in the July to September 2025 quarter (Q2FY26), supported by a timely GST cut which significantly enhanced affordability and strengthened consumer sentiment.

 

The company continues to demonstrate strong margin resilience, with internal combustion engine (ICE)-segment Ebitda expanding 121 bps Y-o-Y to 17.7 per cent despite ₹252-crore EV-related investments. The expansion was driven by cost-efficiency under the LEAP programme and an improvement in product mix.

 

In Q2FY26, Hero Moto witnessed strong momentum, aided by the success of new launches, expanding product portfolio, and customer‐centric marketing campaigns. Furthermore, the company's Emerging Mobility business -- VIDA -- returned growth ahead of the industry average, and the company outperformed the markets in global business.

 

The management expects the momentum in growth to continue, supported by benefits flowing in from the GST reforms, healthy macro‐economic parameters, and a robust product portfolio.  ALSO READ | HUL's ice cream biz demerger: What's in it for investors? Nuvama decodes

Hero MotoCorp share price outlook

 

With the GST-led demand tailwind and improving rural sentiment, analysts at Choice Institutional Equities expect the momentum to sustain into H2FY26E, aiding further market share gain across core and emerging segments.

 

"Hero Moto has enhanced its premium offerings, which are supported by a strong framework for scaling up its premium business. Additionally, its global business and EV vertical are rapidly expanding, highlighting its continued growth potential. The management maintains a long-term Ebitda margin guidance of ~14-16 per cent," analysts at Axis Direct noted.

 

The brokerage firm said it is monitoring Hero's roadmap in the EV product portfolio, its strategy in the mid-weight motorcycle segment amid intensifying competition, and its expansion into new international markets. Additionally, government initiatives to enhance rural income, higher disposable income, and the marriage season are expected to support 2W industry growth, benefiting Hero, particularly in the entry and 125cc segments. The brokerage has maintained its 'Buy' rating on Hero MotoCorp with a share price target of ₹6,245, implying an upside of neaely 8 per cent from the stock's last closing price/

 

Motilal Oswal Financial Services, meanwhile, expects HMCL to deliver a volume CAGR of 6 per cent over FY26-28, driven by new launches and a ramp-up in exports. HMCL, it said, will also benefit from a gradual rural recovery, given strong brand equity in the economy and executive segments.

 

The brokerage firm has reiterated its 'Buy' rating with a target price of ₹6,503 (based on 20x Sep’27E EPS + ₹141/397 for Hero FinCorp/Ather post-20 per cent Holdco discount). The stock target price implies a 12 per cent upside from current levels.