Stock Performance and Market Context
On 4 December 2025, Hero MotoCorp’s stock touched an intraday high of Rs.6351.85, representing a 2.26% rise during the trading session. This new peak comes after the stock reversed its trend following two consecutive days of decline, signalling renewed buying interest. The stock outperformed its sector by 0.83% on the day, trading above all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, which indicates a robust upward trend.
The broader market also showed resilience, with the Sensex recovering from an initial dip of 119.25 points to close 310.76 points higher at 85,298.32, a 0.23% gain. The Sensex remains close to its own 52-week high, just 1.01% shy of 86,159.02, supported by mid-cap stocks leading the charge with the BSE Mid Cap index gaining 0.24% on the day.
Long-Term Growth and Financial Metrics
Over the past year, Hero MotoCorp’s stock has delivered a return of 36.01%, significantly outpacing the Sensex’s 5.33% return over the same period. This performance is underpinned by the company’s steady financial growth and strong fundamentals. The company’s average Return on Equity (ROE) stands at 20.04%, reflecting efficient utilisation of shareholder funds.
Net sales have expanded at an annual rate of 10.29%, while operating profit has grown at 17.46%, indicating healthy operational performance. The company maintains a low average debt-to-equity ratio of zero, highlighting a conservative capital structure that supports sustainable growth.
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Recent Profitability and Valuation Insights
Hero MotoCorp has reported positive results for three consecutive quarters, with the latest six-month Profit After Tax (PAT) at Rs.3,014.18 crores, reflecting a growth of 42.88%. The company’s Return on Capital Employed (ROCE) for the half-year period stands at a high 32.40%, demonstrating effective capital utilisation.
Quarterly net sales reached a peak of Rs.12,218.39 crores, reinforcing the company’s strong revenue base. The stock’s Return on Equity (ROE) has risen to 25.2%, accompanied by a Price to Book Value ratio of 5.9, suggesting an attractive valuation relative to its historical and peer benchmarks.
Over the last year, profits have expanded by 27.7%, while the Price/Earnings to Growth (PEG) ratio remains at 0.9, indicating a valuation that aligns with the company’s earnings growth trajectory.
Institutional Holding and Market Standing
Institutional investors hold a significant 55.15% stake in Hero MotoCorp, reflecting confidence from entities with extensive analytical resources. The company ranks among the top 1% of all stocks rated by MarketsMojo, positioned fifth among mid-cap companies and sixth across the entire market, underscoring its market prominence.
Its market-beating performance extends beyond the last year, with the stock outperforming the BSE500 index over three years, one year, and three months, highlighting consistent strength in both long-term and near-term horizons.
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Technical Momentum and Market Dynamics
The stock’s current trading above all major moving averages signals a sustained positive momentum. The 5-day, 20-day, 50-day, 100-day, and 200-day moving averages all support the upward trajectory, which is a technical indicator favoured by market participants for trend confirmation.
Hero MotoCorp’s 52-week low stands at Rs.3,322.60, illustrating the substantial price appreciation over the past year. The stock’s ability to recover and surpass previous highs after a brief correction period highlights resilience amid fluctuating market conditions.
Meanwhile, the Sensex’s bullish stance, trading above its 50-day moving average with the 50 DMA positioned above the 200 DMA, provides a supportive backdrop for stocks like Hero MotoCorp within the automobile sector.
Sector and Industry Positioning
Operating within the automobile industry, Hero MotoCorp continues to demonstrate leadership through consistent financial performance and market presence. The company’s growth in net sales and profitability metrics reflects its capacity to navigate sectoral dynamics effectively.
Its market capitalisation and trading behaviour indicate a strong position relative to peers, supported by a combination of fundamental strength and technical momentum.
Summary of Key Financial Indicators
To summarise, Hero MotoCorp’s key financial indicators include:
- Return on Equity (ROE): 20.04% average, 25.2% latest
- Net Sales growth: 10.29% annual rate
- Operating Profit growth: 17.46% annual rate
- Profit After Tax (PAT) growth over six months: 42.88%
- Return on Capital Employed (ROCE): 32.40% (half-year)
- Price to Book Value: 5.9
- PEG ratio: 0.9
- Institutional Holdings: 55.15%
These metrics collectively illustrate the company’s solid financial footing and its ability to sustain growth in a competitive market environment.
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