Hero MotoCorp Plans to Triple EV Capacity in FY27, Eyes Double-Digit Industry Growth 7 hrs ago Today
Hero MotoCorp's concall update outlines a phased EV capacity tripling within FY27 — from 15,000 to 45,000 units per month — alongside expectations of double-digit two-wheeler industry growth and PLI accruals covering 100% of its EV portfolio by December 2026. Management targets a medium-term EBITDA margin of 14% to 16%, while planning to offset Q2 FY27 input cost pressures through product mix improvements and cost-saving initiatives.
CLSA Assigns Outperform Rating to Hero MotoCorp with Target Price of ₹5,728
CLSA has initiated coverage on Hero MotoCorp with an Outperform rating and a target price of ₹5,728, arguing that El Niño-related concerns have been overstated. The brokerage highlights the company's consistent track record of positive volume growth with EBITDA margins above 14%. A 5% volume CAGR is expected for FY27–28, supported by GST rate cuts and new scooter launches. CLSA further contends that current valuations embed overly pessimistic assumptions on growth and margins, presenting an attractive investment case.
JP Morgan Maintains Overweight Rating on Hero MotoCorp with Target Price of ₹6,430
JP Morgan has maintained an Overweight rating on Hero MotoCorp with a target price of ₹6,430, backed by expectations of 7–8% domestic two-wheeler industry growth and Hero's likely outperformance. Export momentum remains a key positive, with a 42% CAGR projected for FY24–26. Near-term headwinds include margin weakness and a structural shift toward scooters and EVs, while price hikes and EV PLI benefits are seen as gradual recovery drivers. Investor concerns around market-share loss remain an ongoing overhang on the stock.
Hero MotoCorp Aims for Double-Digit Growth in FY27, Focuses on Electric Scooters
Hero MotoCorp has announced a target of double-digit growth for FY27, with electric scooters identified as a primary area of strategic focus. The company is directing its efforts toward expanding its electric vehicle portfolio to strengthen its foothold in India's evolving two-wheeler market. This growth agenda reflects Hero MotoCorp's commitment to aligning with the broader shift toward electric mobility in the country.
Hero Motocorp Targets Rapid Expansion in SAARC, Africa, and Latin America; Plans to Double Bangladesh Presence and Re-Enter Sri Lanka
Hero Motocorp has announced plans to pursue rapid growth in SAARC, Africa, and Latin America as part of its export-focused strategy. The company aims to double its market presence in Bangladesh and plans to re-enter Sri Lanka. These strategic directions were disclosed during a recent concall update, highlighting the company's commitment to accelerating its international business across multiple high-growth regions.
06May 26
Hero Motocorp Aims To Develop Vehicles With Higher Ethanol Blends & Low Emission Powertrains
Hero Motocorp has announced its aim to develop vehicles compatible with higher ethanol blends and low emission powertrains. The initiative underscores the company's strategic focus on cleaner and more sustainable mobility technologies. This development reflects Hero Motocorp's commitment to advancing alternative fuel solutions within its vehicle portfolio, aligning with broader industry trends toward reduced emissions.
06May 26
Hero Motocorp Plans Spending Delays to Manage Short-Term Costs and Margins
Hero Motocorp plans to delay certain expenditures to manage short-term costs while maintaining its 14%-16% operating margin target. The company has committed ₹1,500 crore to double scooter and EV capacity and flagged near-term uncertainties stemming from West Asia developments, even as it pursues investments in brand development, premium scooters, and international expansion.
Morgan Stanley Raises Hero MotoCorp Target to ₹6,537, Maintains Overweight Rating
Morgan Stanley has updated its coverage of Hero MotoCorp by maintaining an Overweight rating while raising the target price to ₹6,537 from ₹6,471. The global investment bank expresses strong conviction in the auto volume upcycle and attractive industry outlook, though acknowledges near-term challenges including 1QFY27 margin headwinds, cost pressures, supply-chain risks, and tighter regulations.
CLSA Cuts Hero MotoCorp Target Price to Rs 5437, Maintains Hold Rating
CLSA has cut Hero MotoCorp's target price to Rs 5437 from Rs 5913 while maintaining a Hold rating. The brokerage reduced FY27/28 EPS estimates by 5-11% due to near-term earnings pressure. This revision is part of broader OEM sector cuts ranging from 3-13%, reflecting a more cautious market outlook.
Macquarie Maintains Outperform Rating on Hero MotoCorp with Target Price of Rs 6,674
Macquarie has maintained its Outperform rating on Hero MotoCorp with a target price of Rs 6,674, citing strong automotive sector momentum. The brokerage highlights SUV-led passenger vehicle growth while traditional cars lag, and notes broad-based two-wheeler demand recovery with scooters outperforming motorcycles, creating a supportive environment for the company's business prospects.