Buy Hero MotoCorp, target price Rs 3347: HDFC Securities

HDFC Securities has buy call on Hero MotoCorp with a target price of Rs 3347. The current market price of Hero MotoCorp is Rs 2813.45. Time period given by analyst is one year when Hero MotoCorp Ltd. price can reach defined target.

Hero MotoCorp Ltd., incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 56149.04 Crore) operating in Auto sector.

Hero MotoCorp Ltd. key Products/Revenue Segments include Motorised Two Wheelers Upto 350cc Engine Capacity, Spares (Two Wheelers), Other Operating Revenue, Sale of services and Duty Drawback for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 8503.07 Crore, up 11.47 % from last quarter Total Income of Rs 7627.99 Crore and up 50.54 % from last year same quarter Total Income of Rs 5648.20 Crore. Company reported net profit after tax of Rs 606.70 Crore in latest quarter.

Investment Rationale
At 12.4x FY24 PER, the valuation is attractive. It maintains BUY with a revised TP of INR 3,347 (from INR 3,268) due to roll-forward to June-24 estimates.