Buy Hero MotoCorp, target Rs 3,305: Dharmesh Kant

Dharmesh Kant, Head - Retail Research, MOSL maintains a buy rating on Hero MotoCorp with a 12-month target price of Rs 3,305. The results for the two-wheeler makes came largely in line with estimates, with stable EBIDTA margins at 15.7 per cent. The normal monsoon is likely to give a boost to growth in H2FY17.

Almost 50 per cent of the sales comes from the rural market. It caters to the price-sensitive segment. Good monsoons, roll out of 7th Pay commission and direct benefit transfer to farmers are going to act as big triggers for the company.