External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>Hero MotoCorp’s Revenue/EBITDA stood largely in line with our estimates, while PAT stood ahead by 7%, led by higher-than-expected other income.</li><li>Revenue grew by 4%/8% YoY/QoQ to Rs 9,445 Cr, largely in line with our estimate.</li><li>EBITDA grew by 28%/10% YoY/QoQ (inline) to Rs 1,328 Cr, while EBITDA margins reached the 14% mark, up 262/30bps YoY/QoQ, led by lower RM costs (GMs at 31%, up 337bps YoY), price hikes and better sales mix. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Hero MotoCorp’s Revenue/EBITDA stood largely in line with our estimates, while PAT stood ahead by 7%, led by higher-than-expected other income.Revenue grew by 4%/8% YoY/QoQ to Rs 9,445 Cr, largely in line with our estimate.EBITDA grew by 28%/10% YoY/QoQ (inline) to Rs 1,328 Cr, while EBITDA margins reached the 14% mark, up 262/30bps YoY/QoQ, led by lower RM costs (GMs at 31%, up 337bps YoY), price hikes and better sales mix. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Hero MotoCorp - Products Lineup in Place; Market Share Gains Impending

<ul>
<li>Hero Moto Corp Ltd (HMCL) is the dominant player in the Indian 2W industry, boasting a market share of approximately 34.6% as of March 2022.</li>
<li>Motorcycles constitute the majority of its revenue, contributing around 94% of total volumes, while scooters contribute 6%.</li>
<li>With a focus on the domestic market, Hero derives about 94% of its volumes from India. </li>
</ul>
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.


Hero Moto Corp Ltd (HMCL) is the dominant player in the Indian 2W industry, boasting a market share of approximately 34.6% as of March 2022.
Motorcycles constitute the majority of its revenue, contributing around 94% of total volumes, while scooters contribute 6%.
With a focus on the domestic market, Hero derives about 94% of its volumes from India. 

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pick of the Week - Hero Motocorp Ltd - 01 JAN 2024

Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hero-motocorp-ltd" target="_blank" data-smartkarma-citation="entities:2391:1" rel="noopener">Hero Motocorp (HMCL IN)</a>  &amp; <a href="https://www.smartkarma.com/entities/harley-davidson-inc" target="_blank" data-smartkarma-citation="entities:4386:1" rel="noopener">Harley Davidson (HOG US)</a> launched their collaborative creation, the Harley-Davidson X440, in India.</li>
<li>While this is a step in the right and anticipated direction, there are potentially grave mistakes that need to be corrected.</li>
<li>For HOG, there is more to lose than to gain from this development. Additionally, <a href="https://www.smartkarma.com/entities/eicher-motors-ltd" target="_blank" data-smartkarma-citation="entities:18316:1" rel="noopener">Eicher Motors (EIM IN)</a> moat around the brand and a strong riding culture is likely underrated.</li>
</ul>



Hero Motocorp (HMCL IN)  &amp; Harley Davidson (HOG US) launched their collaborative creation, the Harley-Davidson X440, in India.
While this is a step in the right and anticipated direction, there are potentially grave mistakes that need to be corrected.
For HOG, there is more to lose than to gain from this development. Additionally, Eicher Motors (EIM IN) moat around the brand and a strong riding culture is likely underrated.


<ul><li>Market share gain through new launches, recovery in rural demand, and the performance of the EV portfolio remain critical for valuation rerating.</li><li>Our TP implies a 10% upside from the CMP and as a result, we revise our rating from HOLD to BUY.</li><li>Hero MotoCorp’s Revenue/EBITDA stood largely in line with our estimates, while PAT stood ahead by 7%, led by higher-than-expected other income. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Market share gain through new launches, recovery in rural demand, and the performance of the EV portfolio remain critical for valuation rerating.Our TP implies a 10% upside from the CMP and as a result, we revise our rating from HOLD to BUY.Hero MotoCorp’s Revenue/EBITDA stood largely in line with our estimates, while PAT stood ahead by 7%, led by higher-than-expected other income. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Hero MotoCorp - Inline EBITDA Margins; Recovery in Market Share Remains Critical

External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

HDFC securities is the best online trading platform for stocks, IPOs, mutual fund in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>In the current fiscal, HMC’s motorcycle market share further slipped by 380 bps to 44.5%</li><li>This is despite its multiple launches in H1, which include Passion Plus, new Glamor, Xtreme160R 4V, X440, and Karizma</li><li>In the 125cc segment, it has consistently lost market share to rival launches since FY20, despite multiple attempts to regain share, and this fiscal has been no different</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

In the current fiscal, HMC’s motorcycle market share further slipped by 380 bps to 44.5%This is despite its multiple launches in H1, which include Passion Plus, new Glamor, Xtreme160R 4V, X440, and KarizmaIn the 125cc segment, it has consistently lost market share to rival launches since FY20, despite multiple attempts to regain share, and this fiscal has been no differentContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Hero MotoCorp -  Fails to Recover Back Share Despite New Launches.

India

Hero MotoCorp Ltd. designs, manufactures and distributes motorcycles. The Company's products also include motorcycle parts and accessories.

Hero Motocorp (HMCL IN)

Pick of the Week - Hero Motocorp Ltd - 01 JAN 2024

Hero Moto Corp Ltd (HMCL) is the dominant player in the Indian 2W industry, boasting a market share of approximately 34.6% as of March 2022.

Axis Direct