ScoreWhy is Hero MotoCorp Ltd. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 20.64%
- Healthy long term growth as Net Sales has grown by an annual rate of 8.69%
- The company is Net-Debt Free
2
With ROE of 24.5, it has a Attractive valuation with a 5.4 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 27.72%, its profits have risen by 9.9% ; the PEG ratio of the company is 2.1
3
High Institutional Holdings at 55.45%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
4
Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks
5
Market Beating performance in long term as well as near term
- Along with generating 27.72% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Hero MotoCorp should be less than 10%
- Overall Portfolio exposure to Automobiles should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Hero MotoCorp for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Hero MotoCorp
27.72%
1.05
26.40%
Sensex
-3.04%
-0.22
13.54%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.69%
EBIT Growth (5y)
11.41%
EBIT to Interest (avg)
61.86
Debt to EBITDA (avg)
0.14
Net Debt to Equity (avg)
-0.58
Sales to Capital Employed (avg)
1.96
Tax Ratio
24.10%
Dividend Payout Ratio
75.37%
Pledged Shares
0
Institutional Holding
55.45%
ROCE (avg)
34.03%
ROE (avg)
20.64%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
33
Price to Book Value
5.41
EV to EBIT
15.99
EV to EBITDA
14.11
EV to Capital Employed
11.45
EV to Sales
2.05
PEG Ratio
2.13
Dividend Yield
3.18%
ROCE (Latest)
59.33%
ROE (Latest)
24.49%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
NET SALES(Q)
Highest at Rs 13,126.35 cr
-4What is not working for the Company
PBT LESS OI(Q)
Lowest at Rs 1,460.98 cr.
Loading Valuation Snapshot...
Here's what is working for Hero MotoCorp
Net Sales - Quarterly
Highest at Rs 13,126.35 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Here's what is not working for Hero MotoCorp
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 1,460.98 cr has Fallen at -10.0% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 1,624.11 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 1,460.98 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Non Operating Income - Quarterly
Highest at Rs 459.74 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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