Motilal Oswal, Jefferies Recommend Buy Call To Large Cap Auto Stock, TP Rs 3500

Leading brokerage firms Jefferies and Motilal Oswal have recommended buy call to large cap auto stock Hero Motocorp Ltd shares after the company declared healthy quarterly earnings. Prabhudas Lilladher has recommended accumulate rating with target price of Rs 3575 per share. Jefferies has assigned buy call with target price of Rs 3500 apiece. Hero Motocorp shares declined 1.20% intraday today to 3055.00 per share. Hero Motocorp stock gave return of 15% in last 1-year. Check details below:

Hero Motocorp Stock Outlook & Return: Current market price of Hero Motocorp stock on BSE is Rs 3050 per share. Its 52-week high price is Rs 3275.00 per share and 52-week low price is Rs 2246.75 per share, respectively. Hero Motocorp has a market capitalisation of Rs 60,960.04 crore. Hero Motocorp shares surged 22.23% in last 6-months, gained 14% in last 2-years, and offered return of 7.60% in last 3-years. In last 2-weeks, Hero Motocorp stock fell 6.71%.

Hero Motocorp Quarterly Results: The company announced a 47% growth in its Q2FY24 net profit to Rs 1054 crore as compared to Rs 716 crore last year. The company's revenue from operations soared 4.1% to Rs 9445.42 crore for the July-September quarter as against Rs 9075 crore in the corresponding quarter of last fiscal. It declared its earnings before interest, depreciation, taxes and amortisation (EBIDTA) at Rs 1,328.3 crore for the quarter ended September 2023, up 27.9% as compared to Rs 1,038 crore declared in the corresponding period of last fiscal. The company's operating margin during Q2FY24 got better by 270 basis points, as it soared to 14.1% from 11.4% in Q2FY23.

Jefferies Recommends Buy Call: The analyst has assigned buy call to the two-wheeler stock with a target price of Rs 3,500 per share. Jefferies said the company's Q2 EBITDA growth remained strong as the EBITDA/vehicle soared 5% QoQ to a new all-time high.

Prabhudas Lilladher Assigns Accumulate Call: The brokerage firm has suggested accumulate rating with target price of Rs 3575 per share. According to the analyst, "Revenue and margins were in line versus our and consensus estimates. Other income have been higher for consecutive quarters, will look for more clarity on its sustainability. Hero noted increase in consumer confidence to help momentum, but sees macro headwinds impacting the same over the next few quarter, should be interesting to see if they revise their full year double digit revenue growth guidance."

Motilal Oswal Gives Buy Rating: The analyst recommended buy call on the counter. Motilal Oswal said higher other expenses offset raw material cost savings. Also, Q2 EBITDA margin at 14.1% was higher than its estimates of 13.7%.

About: Hero MotoCorp Limited is the world's largest manufacturer of two wheelers. It has four manufacturing facilities based in Dharuhera and Gurgaon in Haryana Haridwar in Uttarakhand and Neemrana in Rajasthan. It offers a range of bikes starting from CD Dawn CD Deluxe Splendor Plus Splendor NXG Passion and Passion Pro.

Disclaimer

The stock has been picked from the brokerage reports of Motilal Oswal, Jefferies, and Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage Houses are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.