Hero Motors IPO Listing: Debuts At 15.5% Premium On BSE, Should Investors Buy Or Sell In This New Stock?

Hero Motors, a leading automobile company for two-wheelers, has debuted on Indian stock exchanges. On BSE, the stock is listed at more than 15% premium. Experts are neutral in the post-listing of the stock and recommend to be on wait-and-watch mode before making a fresh buy.

Hero Motors Share Price

At the time of writing, Hero Motors share price trading at Rs 97.20 apiece on BSE with market cap of Rs 4,414.98 crore. The stock listed at a premium of 15.5% to Rs 97.30 apiece on BSE, compared to the IPO issue price of Rs 84 apiece. The stock has touched an intraday high and low of Rs 97.59 apiece and Rs 80.50 apiece.

Currently, the auto stock traded at over 18.3% upside from listing price and nearly 16% higher from IPO issue price.

The company opened its Rs 1,000 crore worth IPO for subscription from September 16th to 18th, at a price band of Rs 79 to Rs 84 per share. Overall, on the last day of the IPO, Hero Motors oversubscribed by 7.01 times with strong demand by NII category, whose portion oversubscribed by 10.47 times, followed by retail category portion which oversubscribed by 8.62 times, however, QIB category portion showed slower demand but fully subscribed by 1.59 times.

Should You Invest In Hero Motors Share Price?

As per Shivani Nyati, Head of Wealth at Swastika Investmart LTD, while the company benefits from a strong position in powertrain solutions and the growth potential of EVs, its valuation at around 69-74x P/E remains significantly higher than the peer average of 50.2x.

Although RoNW has improved to 8.53% and EBITDA margin to around 10.2%, both remain below key peers, while high customer concentration adds another risk.

Given the strong business prospects but limited valuation cushion, Nyati added, "our post-listing view is Neutral. Investors can wait for better valuation or price consolidation before considering fresh positions, while existing investors may consider holding with a stop-loss around Rs 75-77."

Hero Motors is an innovation-driven industry-leader recognized worldwide for offering the latest technology in all its products at a real cost advantage to its clients, all leading global OEMs in their domains. It supplies a wide range of best-in-class products and end-to-end solutions in Gears & Transmission, Alloy & Metallic parts and Bike Powertrain systems to premium brands in the Motorcycle, Automotive, Off Road and Electric Vehicle (EV) segments.

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