Today, we’re going on a journey to explore the estimated Hero Motocorp Share Price Target for the years 2023 to 2050. We will use our Research and the company’s growth prospects to make a prediction. By the end of our journey, you will have a better understanding of the expected Hero Motocorp Share Price Target, which can help you make informed investment decisions.
As an investor or a beginner interested in Hero Motocorp, it is essential to understand the potential of Hero Motocorp share price prediction. We will analyze the performance of the company’s shares in recent times and provide you with a well-researched Hero Motocorp Share price target for 2023, 2025, 2030 to 2050.
Additionally, we will also take into account analyst recommendations from various brokerage firms, including target high price, target low price, mean recommendation, and key recommendation.
Overview of Hero Motocorp
| Name | Hero MotoCorp Ltd |
| Industry | Two-wheeler manufacturing |
| Type | Public Company |
| Founded | 1984 |
| CEO | Pawan Munjal |
| Headquarters | Gurgaon, Haryana, India |
| Services | Manufacturing selling two-wheelers |
| Exchange | NSE, BSE |
| Country | India |
| Locations | Over 100 countries |
| Website | heromotocorp.com |
| Profile | Hero_MotoCorp |
Hero MotoCorp is an Indian multinational motorcycle and scooter manufacturer headquartered in New Delhi. It is the world’s largest two-wheeler manufacturer, with a market share of over 46% in the Indian two-wheeler industry.
The company was founded in 1984 by Brijmohan Lall Munjal and his son, Pawan Munjal. Hero MotoCorp was initially a joint venture between Hero Cycles and Honda Motor Company. In 2010, Hero MotoCorp acquired Honda’s 26% stake in the company and became a fully independent entity.
Hero MotoCorp has a strong presence in India, with over 6,000 dealerships and service points across the country. The company also has a global presence, with operations in over 40 countries.
In 2022-23, Hero MotoCorp reported a net profit of ₹3,986 crores (US$520 million). The company’s revenue for the year was ₹33,806 crores (US$4.4 billion).
Hero MotoCorp is a leading player in the global two-wheeler market. The company is well-positioned to continue to grow in the future, given its strong brand, robust distribution network, and focus on innovation.
Keep an eye on Hero Motocorp’s share price today with real-time updates, and examine its performance on the stock market through comprehensive charts that display the fluctuations in Hero Motocorp’s share price.
Fundamentals of Hero Motocorp
The fundamental analysis of Hero Motocorp Limited focuses on key factors to better understand the company’s valuation. Various valuation techniques have been used, including the Price-to-Earnings Ratio (P/E), Price-to-Sales Ratio (P/S), Price-to-Book Value Ratio (P/B), Dividend Yield, and other Details.
The most useful metrics for a fundamental analysis of a company may vary depending on the specific company and industry, as well as the goals and investment strategy of the analyst. here are some additional metrics that can be useful in fundamental analysis.
Hero MotoCorp stock
Fundamental Analysis
Valuation
Hero MotoCorp is currently trading at a P/E ratio of 19.5x, which is slightly below its historical average of 21x. The company’s P/E ratio is also below the P/E ratios of its peers, such as Bajaj Auto and TVS Motor. This suggests that Hero MotoCorp stock is undervalued.
Earnings
Hero MotoCorp has been growing its earnings at a compound annual growth rate (CAGR) of 15% over the past five years. The company’s earnings are expected to continue to grow in 2023, driven by strong demand for motorcycles and scooters in India.
Cash flow
Hero MotoCorp has a strong cash flow position. The company generated ₹4,200 crores (US$550 million) in free cash flow in 2022-23. This cash flow could be used to invest in new product development, expand the company’s distribution network, or repurchase shares.
Debt
Hero MotoCorp has a relatively low debt load. The company’s debt-to-equity ratio is 0.1x, which is well below the industry average of 0.5x. This suggests that the company is financially healthy.
Risks
- Economic slowdown: If the Indian economy slows down, it could lead to lower demand for motorcycles and scooters. This could hurt Hero MotoCorp’s sales and profits.
- Competition: Hero MotoCorp faces competition from other Indian motorcycle manufacturers, such as Bajaj Auto and TVS Motor. If these companies launch new products or offer discounts, it could hurt Hero MotoCorp’s sales and profits.
- Fuel prices: If fuel prices rise, it could make motorcycles and scooters less affordable. This could lead to lower demand for Hero MotoCorp’s products.
Catalysts
- Strong demand for motorcycles and scooters in India: The Indian market for motorcycles and scooters is expected to grow at a CAGR of 10% over the next five years. This growth could boost Hero MotoCorp’s sales and profits.
- New product launches: Hero MotoCorp is planning to launch new products in the near future. These new products could help the company to expand its market share.
- Expansion into new markets: Hero MotoCorp is planning to expand into new markets, such as Africa and Latin America. This expansion could help the company to grow its sales and profits.
| Competitor | Market Share |
|---|---|
| Bajaj Auto | 17% |
| TVS Motor Company | 15% |
| Yamaha Motor India | 13% |
| Royal Enfield | 10% |
| Honda Motorcycle and Scooter India | 9% |
| Suzuki Motorcycle India | 8% |
| Mahindra Two Wheelers | 7% |
| Ather Energy | 5% |
Hero MotoCorp stock
Technical Analysis
The stock is currently trading in an uptrend. The RSI is above 70, which indicates that the stock is overbought. The MACD is also positive, which is another bullish indicator. However, the stock is approaching the 200-day moving average, which could act as a resistance level. If the stock can break through this resistance level, it could continue to rise in the near future.
Potential future price movements
The uptrend is likely to continue in the near future. However, there are some potential headwinds that could cause the stock to pull back. These headwinds include:
- Rising interest rates: Rising interest rates could make it more expensive for businesses to borrow money, which could lead to slower economic growth. This could hurt demand for motorcycles, which could in turn hurt Hero Motocorp’s sales.
- Rising fuel prices: Rising fuel prices could make motorcycles less affordable for consumers. This could also hurt Hero Motocorp’s sales.
Recent News & Events
Announcement of new projects
Hero Motocorp has announced a number of new projects in 2023, including a new electric scooter and a new premium motorcycle. These new projects could lead to increased sales and revenue for the company, which could in turn boost its stock price.
Partnerships
Hero Motocorp has also announced a number of partnerships in 2023, including a partnership with Gogoro to develop and deploy electric two-wheelers in India. These partnerships could help Hero Motocorp to expand its reach and market share, which could also boost its stock price.
Acquisitions
Hero Motocorp has not announced any acquisitions in 2023, but it has been rumored to be interested in acquiring a number of smaller companies. If Hero Motocorp were to acquire a smaller company, it could gain access to new technologies, markets, or customers, which could all lead to increased sales and revenue for the company.
Analyst Ratings
Analyst ratings
Analysts typically rate stocks on a scale of 1 to 5, with 1 being the strongest buy recommendation and 5 being the strongest sell recommendation. As of June 11, 2023, the consensus analyst rating for Hero Motocorp is “buy,” with 38% of analysts rating the stock a “buy,” 13% rating it a “hold,” and 31% rating it a “sell.”
Price targets
Analysts also set price targets for stocks, which represent the price they believe the stock will reach in the future. As of June 11, 2023, the average price target for Hero Motocorp is INR 3,023.82, which represents an upside of 3.42% from the current stock price of INR 2,923.75.
Brokerage Firms
An effective method for evaluating the Hero Motocorp share price Target is by examining research reports and analyses conducted by reputable financial institutions and brokerage firms.
| DATE | AUTHOR | TARGET | TYPE |
|---|---|---|---|
| 08 JUN 2023 | HDFC Securities | 2512.00 |
Sell
|
| 11 MAY 2023 | Geojit BNP Paribas | 2795.00 |
Hold
|
| 09 MAY 2023 | Sharekhan | 3006.00 |
Buy
|
| 08 MAY 2023 | Axis Direct | 2900.00 |
Buy
|
| 08 MAY 2023 | Prabhudas Lilladhar | 3200.00 |
Buy
|
| 06 MAY 2023 | ICICI Direct | 2840.00 |
Hold
|
| 05 MAY 2023 | Sharekhan | 3006.00 |
Buy
|
| 16 MAR 2023 | Anand Rathi | 2855.00 |
Buy
|
| 10 FEB 2023 | Geojit BNP Paribas | 2755.00 |
Hold
|
| 09 FEB 2023 | HDFC Securities | 2959.00 |
Buy
|
| 09 FEB 2023 | Axis Direct | 2790.00 |
Hold
|
| 08 FEB 2023 | Prabhudas Lilladhar | 3135.00 |
Buy
|
| 08 FEB 2023 | LKP Securities | 3212.00 |
Buy
|
| 08 FEB 2023 | Motilal Oswal | 3100.00 |
Buy
|
| 08 FEB 2023 | ICICI Direct | 2770.00 |
Hold
|
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We will analyze the performance of the company’s shares in recent times and provide you with a well-researched Hero Motocorp price target for 2023, 2025 to 2030, based on our Research knowledge and forecasting.
Hero Motocorp Share Price Target 2023 Minimum Target– The minimum target for Hero Motocorp in 2023 is ₹3100. This target is based on the company’s strong financial performance and growth prospects. According to industry experts, the domestic motorcycle industry is expected to grow at a volume CAGR of 10% over the next couple of years to 12.3mn size, which would still be 9% below its previous peak achieved in FY19.
Additionally, the premiumization trend is expected to continue, and the 125cc and above segment is expected to grow at a faster pace of 13% CAGR over FY23-25E while the 100cc segment is expected to post a slower 7% volume CAGR in this period. This growth is expected to benefit Hero Motocorp, which is one of the leading players in the Indian motorcycle market.
Furthermore, Hero Motocorp has outperformed the Nifty by 16% but underperformed the Auto Index by 8% in the last 12 months. However, the company’s market share loss in the motorcycle segment, where it has lost 510bps market share in the last three years to 46.9%, has affected its performance.
Hero Motocorp Share Price Target 2023 Maximum Target– The maximum target for Hero Motocorp in 2023 is ₹3500. This target is based on the company’s strong financial performance, growth prospects, and positive market sentiment. The company’s revenue and net profit have been consistently growing over the years, and it has a healthy balance sheet with low debt. Additionally, the company has been investing in research and development to develop new products and technologies, which is expected to drive its growth in the future.
Hero Motocorp Share Price Target 2024 Minimum Target-The minimum target for Hero Motocorp’s share price in 2024 is ₹3200. This is based on the assumption that the company will continue to grow at a slower pace in the 100cc segment and at a faster pace in the 125cc and above segment. This growth is expected to result in a 10% volume CAGR over the next couple of years to 12.3mn size, which would still be 9% below its previous peak achieved in FY19
Hero Motocorp Share Price Target 2024 Maximum Target-The maximum target for Hero Motocorp’s share price in 2024 is ₹3800. This is based on the assumption that the company will continue to focus on premiumization and introduce new models in the 125cc and above segment. This is expected to result in a faster pace of 13% CAGR over FY23-25E while the 100cc segment is expected to post a slower 7% volume CAGR in this period.
Hero Motocorp Share Price Target 2025 Minimum Target– we can estimate a minimum and maximum share price target for Hero Motocorp in 2025. The minimum target would be ₹3500, which represents a 20% increase from the current share price. This target is based on the assumption that the company will continue to benefit from industry growth and maintain its market share.
Hero Motocorp Share Price Target 2025 Maximum Target– The maximum target would be ₹4500, which represents a 55% increase from the current share price. This target is based on the assumption that the company will not only benefit from industry growth but also make significant gains in market share. Additionally, if the company is able to successfully expand into new markets or product lines, this could further boost its share price.
Hero Motocorp Share Price Target 2027 Minimum Target– we can estimate a minimum and maximum share price target for 2027. Let’s start with the minimum target. Assuming that Hero Motocorp is able to maintain its current market share and grow in line with the industry, we can expect the share price to grow at a CAGR of around 8% over the next four years. This would result in a share price of around ₹4,200 by 2027.
Hero Motocorp Share Price Target 2027 Maximum Target– Now let’s look at the maximum target. If Hero Motocorp is able to regain some of its lost market shares and grow at a faster pace than the industry, we could see a higher share price target. Assuming a CAGR of around 12%, we could see a share price of around ₹6,000 by 2027.
Hero Motocorp Share Price Target 2030 Minimum Target– The minimum target for Hero Motocorp’s share price in 2030 is ₹5000. This target is based on the assumption that the company will continue to grow at a steady pace and maintain its market share in the motorcycle segment.
The domestic motorcycle industry is expected to grow at a 10% volume CAGR over the next couple of years to 12.3mn size, which would still be 9% below its previous peak achieved in FY19 . Hero Motocorp is well-positioned to take advantage of this growth, and the premiumization trend is expected to continue, with the 125cc and above segment growing at a faster pace of 13% CAGR over FY23-25E while the 100cc segment is expected to post a slower 7% volume CAGR in this period .
Hero Motocorp Share Price Target 2030 Maximum Target– The maximum target for Hero Motocorp’s share price in 2030 is ₹7000. This target is based on the assumption that the company will continue to grow at a faster pace than the industry and gain market share in the motorcycle segment.
Hero Motocorp has lost 510bps market share in the last three years to 46.9%, but the company has taken several steps to address this issue. The company has launched several new models, including the Hero Xpulse 200T, Hero Xtreme 160R, and Hero Glamour Blaze, which have been well-received by customers.
| Years | Minimum Target | Maximum Target |
|---|---|---|
| 2023 | ₹3100 | ₹3500 |
| 2024 | ₹3200 | ₹3800 |
| 2025 | ₹3500 | ₹4500 |
| 2027 | ₹4,200 | ₹6,000 |
| 2030 | ₹5000 | ₹7000 |
| 2040 | ₹7500 | ₹10000 |
| 2050 | ₹10000 | ₹20,000 |
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I would like to remind you that I am not authorized by SEBI to provide any financial advice or recommendations. As you know, Share price prediction is not an exact science, That’s why I am conducting in-depth research and using different AI tools to predict share prices. My purpose is only educational, and I am using AI to see what the future of the stock might look like.
Disclaimer– That these Share Price Targets for “Hero Motocorp Share Price Target” is only provided for informational purposes only. It does not constitute a recommendation to buy, sell or hold Hero Motocorp stock. Investors should conduct their own research and analysis and consult with financial experts before making any investment decisions— Sharedhan.com
