Fundamental Result Update

Hero Motocorp Ltd - Q4FY17 Result Update



Hero Motocorp Ltd. revenue declined by 6.4% to Rs 6,915 cr from Rs 7,385Cr in the corresponding quarter of previous year. During quarter, company has sold 16.21 lakh units, declined by 5.8% on YoY basis and inclined by 10.1% on Q-o-Q basis. Hero Motocorp’s strong point is the executive segment in the motorcycle market, but this is also the category that is increasingly being cannibalized by scooters, owing to similar price points. Company has continued to maintain leadership in Motorcycles segment.

Due to lower operating leverage, Operating EBITDA margins decreased by 185 bps to 13.8% on YoY basis which is lower than our expectation and EBITDA for the quarter stood at Rs 958 cr, Q4 profit declined by 11.8% to Rs.718 crore on YoY.

Valuation: The stock at Rs 3,322 trades at 14.7x our estimated FY19E EPS of Rs 227 per share. We assign a price target of Rs 3,632 at 16x FY19 EPS, and have “HOLD” rating on the stock.


Tags: FundamentalResult Update


Search Reports

SEARCH

Reports

Daily Metal & Agro Buzz:

HIGHLIGHTS: Supply of Sugar...

Read More

Daily Market Update...

On 27/06/2017 markets opened...

Read More

Daily Currency Market...

HIGHLIGHTS: The dollar...

Read More

Daily Metal & Agro Buzz:

HIGHLIGHTS: Oil prices were...

Read More

Daily Market Update...

Sensex ended with minor gains...

Read More

MARUTI CALL STRIKE 7300

 INTRADAY CALL: BUY...

Read More

CENTURYTEX

POSITIONAL CALL: BUY...

Read More

DHFL

INTRADAY CALL: BUY DHFL AT...

Read More

DEEPAK FERT

INTRADAY CALL: BUY DEEPAKFERT...

Read More

HINDALCO

 POSITIONAL CALL: BUY...

Read More

Subscribe to newsletter

Request a call back

DISCLAIMER: Investment in markets is subject to market risk, the views and investment tips expressed by our research entity on arihantcapital.com are product of their own. Whilst meticulous care has been taken to ensure that the facts stated are accurate and opinions given are fair and reasonable, neither the analyst nor any employee of our company is in any way is responsible for its contents and nor is its accuracy or completeness guaranteed. ArihantCapital.com offers the views and opinions for assistance only and these are not intended and must not be alone taken as the basis for an investment decision. We advise the users to check with certified experts before taking any investment decisions. The investments discussed in this material may not be suitable for all investors. The recipient alone shall be fully responsible/are liable for any decision taken on the basis of this material.