Hero Motocorp logo

Hero Motocorp

HEROMOTOCO NSE

Key Fundamentals

MidcapBikesAutomobiles
Market Cap
1.0L Cr
Volatility
Moderate
P/E Ratio
19.17
EBITDA
₹8,103 Cr
Return on Equity
26.48%
Debt to Equity
0.04
Book Value
₹1,079.8
EPS
₹204.1
52W High
₹6,388.5
52W Low
₹4,671.5

Tapetide Score

Data-driven rating, 0–100. How it works →

Key Insights

Strengths

4
  • Company is almost debt free.
  • Stock is providing a good dividend yield of 3.54%.
  • Company has been maintaining a healthy dividend payout of 71.5%
  • Debtor days have improved from 24.5 to 18.0 days.

Weaknesses

1
  • The company has delivered a poor sales growth of 8.90% over past five years.

Growth Rate

Revenue Growth
15.49% higher than 3Y
Net Income Growth
31.99% higher than 3Y
Cash Flow Change
93.48% higher than 3Y
ROE
17.43% lower than 3Y
ROCE
11.15% lower than 3Y
EBITDA Margin (Avg.)
0.36% lower than 3Y

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 2d ago
AI opinion · based on fundamentals
Risk medium

Hero MotoCorp, with a market cap of ₹1,03,978 Cr, trades at a PE of 19.3x and PB of 4.89x. The company is virtually debt-free, delivers a robust ROE of 28% (last year), and offers a dividend yield of 3.5% backed by a 71.5% payout ratio. TTM sales growth has accelerated to 26%, though the longer-term 5-year sales CAGR remains modest at 9%.

Bull Case 7
  • Virtually debt-free balance sheet provides financial flexibility and reduces interest rate risk, keeping the debt-to-equity ratio near zero.
  • Dividend yield of 3.5% is well above the Nifty average, supported by a consistent payout ratio of 71.5%, signalling strong cash generation and shareholder return focus.
  • Last-year ROE of 28% is significantly above its own 10-year average of 23%, indicating improving capital efficiency and margin expansion.
  • TTM sales growth has accelerated sharply to 26%, well above the 5-year compounded sales CAGR of 9%, suggesting a strong ongoing demand recovery cycle.
  • Compounded profit CAGR of 28% over 3 years outpaces the 3-year sales CAGR of 12%, reflecting meaningful operating leverage and cost discipline.
  • Debtor days have improved from 24.5 to 18.0 days, indicating better working capital management and faster cash conversion.
  • 3-year stock CAGR of 20% shows the market has re-rated the stock meaningfully after a prolonged underperformance phase (10-year CAGR of only 4%).
Bear Case 8
  • 5-year compounded sales CAGR of only 8.9% reflects structurally slow volume growth in the domestic two-wheeler market over an extended period.
  • 10-year compounded profit CAGR of just 7% suggests limited long-term earnings power growth despite the company's dominant market position.
  • 10-year stock CAGR of only 4% has significantly underperformed broader indices, indicating prolonged value erosion for long-term holders.
  • PB ratio of 4.89x is elevated for a mature, capital-light business with single-digit long-term sales growth, leaving limited room for further multiple expansion.
  • TTM profit growth of 10% lags TTM sales growth of 26%, suggesting that margin tailwinds may be fading or input cost pressures are re-emerging.
  • The EV transition poses a structural threat to Hero's ICE-dominant portfolio; the company remains a late entrant relative to peers like Ather and Ola Electric in the electric two-wheeler segment.
  • 5-year ROE average of 21% is below the last-year figure of 28%, raising the question of whether the current profitability spike is cyclical rather than sustainable.
  • High dividend payout of 71.5% limits retained earnings available for reinvestment in new growth areas such as EVs, premium segments, and international expansion.

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 2h ago
Headwinds 5
  • Rivals outpace in sales growth Sep 5

    Hero MotoCorp's August 2026 sales grew just 2.6% YoY to 5,68,398 units versus Bajaj Auto's 28% and TVS Motor's 21% growth. Hero's P/E of 18.7x trades at a 39-61% discount to peers, reflecting persistent underperformance.

  • Exports decline sharply Sep 2

    August 2026 export dispatches fell 24.56% YoY to 26,093 units from 34,588 units, driven by political turmoil and economic crisis in Bangladesh, Hero's largest export market at 27% of dispatches.

  • August sales miss estimates Sep 2

    August 2026 dispatches of 5,68,398 units missed analyst estimates of 5,90,000 units despite 19% YoY growth.

  • Rising steel and copper costs Sep 5

    Key input prices continue to pressure margins, with two-wheeler companies hiking prices 1-3% in early August 2026. Q1 FY27 gross margin contracted 300 bps due to ~4.5% net commodity inflation.

  • Vida EV still loss-making Sep 2

    Vida's EBITDA loss per vehicle stands at ₹40,000 in Q1 FY27, with total P&L investment of ~₹230 crores in the quarter despite improving unit economics.

Positives 6
  • Scooter volumes surge 71% YTD Sep 2

    YTD scooter dispatches (Apr-Aug 2026) surged 70.93% to 3,32,456 units, with Vida EV hitting 25,558 units in August. Overall YTD volumes grew 17.24% to 27,79,127 units.

  • Vida approaching EV breakeven Sep 2

    Vida's EBITDA loss per vehicle improved 20% QoQ from ₹50,000 to ₹40,000. EV capacity is tripling from 15,000 to 45,000 units/month within FY27, with 60% PLI-certified generating ₹48 crores in Q1.

  • Strong Q1 FY27 revenue growth Sep 2

    Revenue from operations grew 35.7% YoY to ₹12,999 crore in Q1 FY27 standalone, driven by volume expansion, premiumization, and an 8% positive product mix benefit.

  • ₹1,758 cr Ather Energy investment Aug 25

    Hero approved ₹1,758 crore to increase Ather Energy stake from 29.88% to ~32.8%, including ₹960 crore via 76.19 lakh convertible warrants with 25% upfront payment.

  • Major leadership reset for EVs Aug 26

    Five senior executives hired from outside the two-wheeler industry over the past year, including CEO Harshavardhan Chitale from Signify and CTO Sachin Agarwal from VE Commercial Vehicles, to drive EV and premium strategy.

  • New CSO and CDO appointed Aug 17

    Srihari Mulgund (ex-EY-Parthenon, 24 years automotive experience) joined as Chief Strategy Officer on Aug 17, and Suresh Kumar P as Chief Digital Officer effective Aug 31.

Neutral 4
  • ₹4.80 cr ESIC lien settled Sep 8

    Hero MotoCorp paid ₹4.80 crore to clear an ESIC lien on its bank accounts for alleged arrears including interest and costs. The company has filed an appeal against the order.

  • Analyst meetings scheduled September Aug 27

    Hero MotoCorp scheduled investor meetings and conferences for September 2026 in Mumbai and Hong Kong, including an analyst meeting on September 2.

  • FY26 dividend withheld for some Aug 25

    Final dividends for FY26 withheld for shareholders with incomplete bank details or missing KYC, per new SEBI regulations mandating electronic payments only.

  • Euler Motors doubles sales Aug 21

    Hero-backed Euler Motors doubled its sales and revenue, expanding from 30-35 cities to 112 cities with expanded manufacturing capacity.

TL;DR: Hero MotoCorp is executing a meaningful strategic pivot from motorcycles to scooters and EVs, with scooter volumes up 71% YTD and Vida EV approaching breakeven at ~25,000 monthly units. However, the company is losing ground to Bajaj Auto and TVS on both sales growth and exports, with August dispatches missing estimates and exports declining 25% YoY due to Bangladesh weakness. Strong Q1 revenue growth of 36% and aggressive capacity expansion are encouraging, but commodity inflation and the valuation discount to peers signal the market needs to see sustained execution on the EV and premium strategy before re-rating the stock.

Quarterly Results

Particulars Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Sales
8,851
9,533
9,788
9,617
10,211
10,483
10,260
9,970
9,728
12,218
12,487
12,978
13,126
Expenses
7,734
8,174
8,403
8,298
8,804
9,033
8,844
8,529
8,315
10,452
10,735
11,109
11,424
Operating Profit
1,117
1,360
1,385
1,319
1,407
1,450
1,416
1,441
1,413
1,766
1,752
1,870
1,702
OPM %
13%
14%
14%
14%
14%
14%
14%
14%
15%
14%
14%
14%
13%
Other Income
66
213
288
177
225
239
306
345
939
240
179
210
460
Interest
21
25
23
8
19
18
17
17
21
19
20
19
21
Depreciation
180
187
194
197
205
206
209
204
206
210
219
220
220
PBT
982
1,360
1,456
1,292
1,408
1,464
1,497
1,565
2,126
1,777
1,692
1,841
1,921
Tax %
29%
26%
25%
27%
27%
27%
26%
25%
20%
26%
25%
20%
26%
Net Profit
701
1,007
1,091
943
1,032
1,066
1,108
1,169
1,706
1,321
1,275
1,474
1,418
EPS in Rs
35.53
50.35
54.7
46.77
52.31
53.19
55.38
58.06
85.26
65.42
63.35
72.97
70.59
Figures in ₹ Crores

Profit & Loss

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
Sales
27,538
28,457
28,610
32,458
33,971
29,254
30,959
29,551
34,158
37,789
40,923
47,411
50,810
Expenses
24,018
24,033
24,025
27,124
28,946
25,184
26,902
26,295
30,060
32,554
35,135
40,352
43,720
Operating Profit
3,520
4,424
4,585
5,334
5,025
4,070
4,058
3,256
4,099
5,235
5,789
7,059
7,090
OPM %
13%
16%
16%
16%
15%
14%
13%
11%
12%
14%
14%
15%
14%
Other Income
325
421
830
564
741
1,434
553
545
567
689
1,040
1,310
1,089
Interest
12
15
27
31
37
47
46
53
105
76
71
78
79
Depreciation
540
443
502
575
624
846
715
690
697
757
825
855
869
PBT
3,292
4,387
4,885
5,292
5,104
4,611
3,849
3,058
3,864
5,090
5,934
7,436
7,230
Tax %
29%
29%
27%
30%
32%
21%
24%
24%
28%
26%
26%
22%
—
Net Profit
2,364
3,112
3,546
3,722
3,466
3,659
2,936
2,329
2,800
3,742
4,376
5,776
5,488
EPS in Rs
118
157
179
186
172
182
146
116
141
187
219
287
272
Div. Payout %
51%
46%
47%
51%
50%
49%
72%
82%
71%
75%
75%
64%
—
Figures in ₹ Crores

Balance Sheet

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
40
40
40
40
40
40
40
40
40
40
40
40
Reserves
6,500
8,794
10,276
11,932
13,080
14,366
15,376
15,807
16,616
17,659
19,232
21,571
Borrowings
100
232
261
228
312
453
584
605
568
606
700
779
Other Liabilities
4,014
3,829
4,736
5,197
5,072
4,815
7,096
6,027
6,694
7,847
8,418
11,063
Total Liabilities
10,654
12,896
15,312
17,397
18,504
19,674
23,096
22,478
23,917
26,153
28,390
33,453
Fixed Assets
2,952
3,784
4,599
4,961
4,952
6,473
6,380
6,194
6,159
6,232
6,283
6,374
CWIP
719
653
581
355
573
391
495
517
454
484
487
765
Investments
3,118
4,501
6,066
7,669
6,114
8,359
10,582
10,528
10,891
12,751
14,384
19,286
Other Assets
3,864
3,958
4,066
4,411
6,865
4,451
5,639
5,240
6,413
6,685
7,236
7,028
Total Assets
10,654
12,896
15,312
17,397
18,504
19,674
23,096
22,478
23,917
26,153
28,390
33,453
Figures in ₹ Crores

Cash Flow

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
2,186
3,722
4,007
4,017
1,032
5,518
4,110
2,104
2,614
4,923
4,297
8,315
Investing
31
-2,300
-1,972
-1,858
1,298
-2,819
-2,289
-222
-421
-1,828
-1,703
-4,478
Financing
-2,131
-1,475
-2,036
-2,102
-2,252
-2,602
-1,852
-1,975
-2,147
-2,717
-2,815
-3,534
Net Cash Flow
86
-53
-1
57
78
97
-31
-94
45
379
-221
303
Free Cash Flow
955
2,094
2,771
3,196
57
4,230
3,537
1,545
2,052
4,146
3,463
7,227
CFO/OP
90
109
113
104
62
149
125
89
85
119
101
134
Figures in ₹ Crores

Ratios

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
18
16
20
16
29
19
27
27
29
25
30
18
Inventory Days
16
14
14
16
19
24
30
26
27
25
27
31
Days Payable
50
51
62
56
54
58
88
76
73
80
77
88
Cash Conversion Cycle
-16
-20
-29
-24
-5
-15
-32
-23
-17
-30
-20
-40
Working Capital Days
-15
-12
-17
-15
6
-10
-21
-14
-7
-17
-11
-31
ROCE %
50%
54%
48%
45%
39%
27%
24%
18%
23%
29%
30%
35%

Insights

Beta

AI-extracted from concalls & annual reports · figures as reported, with sources

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63 extracted metrics + investor summaries across FY02–FY27.

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Shareholding Pattern

FIIs31.09%Promot.34.73%Others2.08%Public7.74%DIIs24.36%As ofJun 2026

Documents

Frequently Asked Questions about Hero Motocorp

What does Hero MotoCorp Ltd do?
Hero Moto Corp earlier also known as “Hero Honda” is one of India’s first motorcycle manufacturers. The company started in 1984 as a Technological collaboration with Honda, Japan. Before this collaboration, Hero was selling Cycles under the brand name, Hero Cycles. In 2011, Honda group sold its 2...
Where is Hero MotoCorp Ltd (HEROMOTOCO) listed?
Hero MotoCorp Ltd trades as HEROMOTOCO on the NSE and under code 500182 on the BSE.
Which sector does Hero MotoCorp Ltd belong to?
Hero MotoCorp Ltd is classified under the Automobiles sector, in the Bikes industry.
What is the market capitalisation of Hero MotoCorp Ltd?
Hero MotoCorp Ltd has a market capitalisation of ₹1,03,978 Cr, which places it in the Large Cap band.
What is the PE ratio of Hero MotoCorp Ltd?
Hero MotoCorp Ltd trades at a PE ratio of 19.17, on earnings per share of ₹204.1, against a book value of ₹1,079.8 per share.
What is the 52-week high and low of Hero MotoCorp Ltd?
Over the last 52 weeks Hero MotoCorp Ltd has traded between ₹4,671.5 and ₹6,388.5.
Does Hero MotoCorp Ltd pay dividends?
Hero MotoCorp Ltd has a dividend yield of 3.50%.
What is the Return on Equity (ROE) of Hero MotoCorp Ltd?
Hero MotoCorp Ltd reported a return on equity of 26.48%. Its debt-to-equity ratio is 0.04.

Company Information

Hero Moto Corp earlier also known as “Hero Honda” is one of India’s first motorcycle manufacturers. The company started in 1984 as a Technological collaboration with Honda, Japan. Before this collaboration, Hero was selling Cycles under the brand name, Hero Cycles. In 2011, Honda group sold its 26% stake in the company to the Munjals (promoters) and ended the JV. Post the termination of JV, the name of the company was changed to Hero Motocorp. [1] [2]

Website heromotocorp.com
CEO Dr. Pawan Kant Munjal B.E. (Mech.)
Employees 9,527
Listed 2003-04-11
Face Value ₹ 2
Issued Size 20,00,81,612

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