In terms of demand outlook, customers’ preference towards personal mobility, a positive rural sentiment, and new products, especially in the premium segment, are likely to aid demand for Hero MotoCorp
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
The financial performance of Hero MotoCorp (CMP: Rs 2,685; Mcap: Rs 53,570 crore) in the second quarter of FY22 improved on a quarter-on-quarter (QoQ) basis driven by a pick-up in demand, an improvement in realisation and cost reduction efforts undertaken by the company. In terms of demand outlook, customers’ preference towards personal mobility, a positive rural sentiment, and new products, especially in the premium segment, are likely to aid demand. We advise investors to accumulate this fundamentally strong and well run…
