Hero MotoCorp to vroom on new launches and uptick in rural growth

Valuation is trading around 22 times expected FY25 earnings per share and investors would have to factor in holdings in Hero FinCorp and Ather after taking a holding company discount

Hero MotoCorp (HMCL) saw strong volume performance in the first quarter of the current financial year (Q1FY25), but margins disappointed due to weak spare part sales and negative electric vehicle (EV) margins. The company hopes for a strong festive season due to better rural sentiment.

Revenue grew 16 per cent year-on-year (Y-o-Y) to Rs 10,140 crore, operating profit was up 21 per cent to Rs 1,460 crore, and adjusted net profit grew 19 per cent Y-o-Y to Rs 1,120 crore. Net realisations improved 2 per cent Y-o-Y to Rs 66,100 per unit while volumes grew 13.5 per