In today’s briefing:
- TVS Motors- Forensic Analysis
- Hero Motocorp (HMCL IN) | Structural Problems Persist
TVS Motors- Forensic Analysis
- TVS Motor (TVSL IN) primary setback is in the form of poor capital allocation
- In TVS Motors: Analysis Of Various Investments , we had briefed on the investment policy of the company and how the non-core investments/subsidiaries are dragging the profits.
- This insight is an extension of the previous one; we update on the various investments the company has undergone and how it impacts the capital allocation.
Hero Motocorp (HMCL IN) | Structural Problems Persist
- We anticipate the uptick in retail primarily aided by the wedding season to be short-lived for Hero Motocorp (HMCL IN).
- HMCL has not been able to keep pace with changing consumer preferences, the limited success in premium segment and scooters is likely to remain an overhang even on new launches.
- Inventory correction at the dealer’s end could aid wholesales supporting valuations, but the company remains structurally unattractive.
Before it’s here, it’s on Smartkarma
