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Last Updated on: 26 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 500182 | NSE: HEROMOTOCO

Hero MotoCorp Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 26, 2024, 10:18 pm

Market Cap 85,492 Cr.
Current Price 4,275
High / Low 6,246/3,930
Stock P/E20.7
Book Value 951
Dividend Yield2.69 %
ROCE29.1 %
ROE22.0 %
Face Value 2.00
PEG Ratio-148.02

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Hero MotoCorp Ltd

Competitors of Hero MotoCorp Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hero MotoCorp Ltd 85,492 Cr. 4,275 6,246/3,93020.7 9512.69 %29.1 %22.0 % 2.00
Bajaj Auto Ltd 2,47,978 Cr. 8,878 12,774/6,56033.6 1,1090.90 %33.5 %26.5 % 10.0
Atul Auto Ltd 1,578 Cr. 569 844/470108 1540.00 %4.19 %1.67 % 5.00
TVS Motor Company Ltd 1,15,939 Cr. 2,439 2,958/1,87361.4 1630.33 %14.7 %26.6 % 1.00
Eicher Motors Ltd 1,31,768 Cr. 4,801 5,105/3,56230.9 6931.06 %31.1 %24.2 % 1.00
Industry Average116,551.00 Cr4,192.4050.92614.001.00%22.52%20.19%3.80

All Competitor Stocks of Hero MotoCorp Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales9,8278,6905,5038,5398,0137,4978,4489,1588,1188,4348,8519,5339,788
Expenses8,4787,4635,1197,5167,0306,6617,5278,0967,1777,3457,7348,1748,403
Operating Profit1,3491,2273841,0239838369201,0629421,0891,1171,3601,385
OPM %14%14%7%12%12%11%11%12%12%13%13%14%14%
Other Income206106145158140131569426523866213288
Interest11131314131314482419212523
Depreciation180174173174174168173173172180180187194
Profit before tax1,3641,1473439939367867899361,0111,1289821,3601,456
Tax %25%23%25%25%25%21%26%27%29%28%29%26%25%
Net Profit1,0298852567487046215866827218117011,0071,091
EPS in Rs51.0244.1012.8237.3235.2230.6029.5534.4536.3340.2935.5350.3554.70

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales25,27527,53828,45728,61032,45833,97129,25430,95929,55134,15836,606
Expenses21,72224,01824,03324,02527,12428,94625,18426,90226,29530,06031,655
Operating Profit3,5533,5204,4244,5855,3345,0254,0704,0583,2564,0994,951
OPM %14%13%16%16%16%15%14%13%11%12%14%
Other Income4303254218305647411,434553545567804
Interest12121527313747465310588
Depreciation1,107540443502575624846715690697740
Profit before tax2,8643,2924,3874,8855,2925,1044,6113,8493,0583,8644,926
Tax %26%29%29%27%30%32%21%24%24%28%
Net Profit2,1022,3643,1123,5463,7223,4663,6592,9362,3292,8003,610
EPS in Rs105.30118.42157.34179.49186.29172.44182.14146.05115.95140.61180.87
Dividend Payout %62%51%46%47%51%50%49%72%82%71%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)12.46%31.64%13.95%4.96%-6.88%5.57%-19.76%-20.67%20.22%
Change in YoY Net Profit Growth (%)0.00%19.18%-17.70%-8.98%-11.84%12.45%-25.33%-0.91%40.90%

Hero MotoCorp Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2014-2015 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:4%
5 Years:2%
3 Years:7%
TTM:15%
Compounded Profit Growth
10 Years:7%
5 Years:2%
3 Years:11%
TTM:23%
Stock Price CAGR
10 Years:3%
5 Years:12%
3 Years:21%
1 Year:5%
Return on Equity
10 Years:24%
5 Years:19%
3 Years:18%
Last Year:22%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 3:30 pm

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital404040404040404040404040
Reserves5,5836,5008,79410,27611,93213,08014,36615,37615,80716,61617,65918,971
Borrowings284100232261228312453584605568606588
Other Liabilities4,2154,0143,8294,7365,1975,0724,8157,0966,0276,6947,8479,663
Total Liabilities10,12210,65412,89615,31217,39718,50419,67423,09622,47823,91726,15329,261
Fixed Assets2,2472,9523,7844,5994,9614,9526,4736,3806,1946,1596,2326,588
CWIP855719653581355573391495517454484145
Investments4,1063,1184,5016,0667,6696,1148,35910,58210,52810,89112,75114,980
Other Assets2,9143,8643,9584,0664,4116,8654,4515,6395,2406,4136,6857,548
Total Assets10,12210,65412,89615,31217,39718,50419,67423,09622,47823,91726,15329,261

Reserves and Borrowings Chart

Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +2,9632,1863,7224,0074,0171,0325,5184,1102,1042,6144,923
Cash from Investing Activity +-1,61631-2,300-1,972-1,8581,298-2,819-2,289-222-421-1,828
Cash from Financing Activity +-1,414-2,131-1,475-2,036-2,102-2,252-2,602-1,852-1,975-2,147-2,717
Net Cash Flow-6686-53-1577897-31-9445379

Free Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-281.00-97.00-228.00-257.00-223.00-307.00-449.00-580.00-602.00-564.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days1318162016291927272925
Inventory Days1316141416192430262725
Days Payable4650516256545888767380
Cash Conversion Cycle-19-16-20-29-24-5-15-32-23-17-30
Working Capital Days-33-14-11-17-148-7-17-9-4-13
ROCE %50%54%48%45%39%27%24%18%23%29%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters34.76%34.75%34.75%34.78%34.78%34.78%34.78%34.78%34.76%34.76%34.76%34.76%
FIIs32.28%29.57%29.22%28.84%27.79%27.48%27.01%28.10%26.80%28.34%28.93%29.87%
DIIs21.97%23.69%24.24%25.58%26.89%27.30%27.86%27.28%29.14%28.09%27.76%26.87%
Public11.00%11.99%11.79%10.81%10.55%10.45%10.36%9.85%9.30%8.80%8.55%8.49%
No. of Shareholders3,43,8983,98,5384,04,0563,68,7213,49,5223,27,7733,33,0543,13,1043,01,4982,80,5472,92,8283,00,146

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Nifty 50 ETF2,352,4450.631087.19737,8552024-12-25218.82%
ICICI Prudential Bluechip Fund2,157,9302997.3737,8552024-12-25192.46%
Kotak Flexicap Fund - Regular Plan1,700,0001.77785.66737,8552024-12-25130.4%
SBI Blue Chip Fund1,000,0001.07462.16737,8552024-12-2535.53%
Kotak Multicap Fund991,0315.13458.01737,8552024-12-2534.31%
Kotak Equity Opportunities Fund - Regular Plan974,8002.46450.51737,8552024-12-2532.11%
DSP Mid Cap Fund862,3482.41398.54737,8552024-12-2516.87%
ICICI Prudential Business Cycle Fund739,1944.3341.62737,8552024-12-250.18%
Tata Equity P/E Fund - Regular Plan737,8554.76341737,8552024-12-250%
Tata Equity P/E Fund - Regular Plan - Trigger Option A 5%737,8554.76341737,8552024-12-250%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)187.36140.62115.96146.07182.15
Diluted EPS (Rs.)187.04140.62115.93146.04182.15
Cash EPS (Rs.)231.10174.84161.04185.07223.81
Book Value[Excl.RevalReserv]/Share (Rs.)892.17839.66800.54778.76728.25
Book Value[Incl.RevalReserv]/Share (Rs.)892.17839.66800.54778.76728.25
Revenue From Operations / Share (Rs.)1890.381709.201479.041549.511464.53
PBDIT / Share (Rs.)310.36233.31200.19233.10239.87
PBIT / Share (Rs.)272.48198.42165.68197.31197.53
PBT / Share (Rs.)260.65193.17163.02194.99229.11
Net Profit / Share (Rs.)193.22139.94126.53149.28181.47
NP After MI And SOA / Share (Rs.)187.34140.60115.96146.03182.13
PBDIT Margin (%)16.4113.6513.5315.0416.37
PBIT Margin (%)14.4111.6011.2012.7313.48
PBT Margin (%)13.7811.3011.0212.5815.64
Net Profit Margin (%)10.228.188.559.6312.39
NP After MI And SOA Margin (%)9.908.227.849.4212.43
Return on Networth / Equity (%)21.1516.8714.6218.9225.25
Return on Capital Employeed (%)28.5122.1419.5123.7625.62
Return On Assets (%)14.3111.7410.3012.6318.49
Total Debt / Equity (X)0.020.010.020.020.01
Asset Turnover Ratio (%)1.511.481.311.471.55
Current Ratio (X)1.461.571.921.752.02
Quick Ratio (X)1.211.281.651.471.72
Inventory Turnover Ratio (X)14.1416.5314.2215.9016.97
Dividend Payout Ratio (NP) (%)72.0671.1181.9265.0453.25
Dividend Payout Ratio (CP) (%)59.9456.9763.1352.2343.20
Earning Retention Ratio (%)27.9428.8918.0834.9646.75
Cash Earning Retention Ratio (%)40.0643.0336.8747.7756.80
Interest Coverage Ratio (X)81.2444.4675.33100.35102.73
Interest Coverage Ratio (Post Tax) (X)53.6727.6748.6165.2764.19
Enterprise Value (Cr.)94099.4446923.2946091.8558321.9931759.24
EV / Net Operating Revenue (X)2.491.371.561.881.09
EV / EBITDA (X)15.1710.0611.5212.526.63
MarketCap / Net Operating Revenue (X)2.501.371.551.881.09
Retention Ratios (%)27.9328.8818.0734.9546.74
Price / BV (X)5.332.822.903.782.21
Price / Net Operating Revenue (X)2.501.371.551.881.09
EarningsYield0.030.050.050.050.11

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Hero MotoCorp Ltd as of December 26, 2024 is: 4,447.35

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 26, 2024, Hero MotoCorp Ltd is Undervalued by 4.03% compared to the current share price 4,275.00

Intrinsic Value of Hero MotoCorp Ltd as of December 26, 2024 is: 4,441.13

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 26, 2024, Hero MotoCorp Ltd is Undervalued by 3.89% compared to the current share price 4,275.00

Last 5 Year EPS CAGR: -0.14%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 32.45%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -11.91, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -20.91, which is a positive sign.
  4. The company has higher reserves (12,913.33 cr) compared to borrowings (401.75 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (30.09 cr) and profit (3.64 cr) over the years.

    Stock Analysis

    • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Hero MotoCorp Ltd:
      1. Net Profit Margin: 10.22%
        • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
      2. ROCE: 28.51% (Industry Average ROCE: 22.52%)
        • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
      3. ROE%: 21.15% (Industry Average ROE: 20.19%)
        • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
      4. Interest Coverage Ratio (Post Tax): 53.67
        • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
      5. Quick Ratio: 1.21
        • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
      6. Stock P/E: 20.7 (Industry average Stock P/E: 50.92)
        • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
      7. Total Debt / Equity: 0.02
        • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
      The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
      Stock Rating:

    About the Company - Qualitative Analysis

    Hero MotoCorp Ltd. is a Public Limited Listed company incorporated on 19/01/1984 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L35911DL1984PLC017354 and registration number is 017354. Currently Company is involved in the business activities of Manufacture of motorcycles, scooters, mopeds etc. and their engine. Company’s Total Operating Revenue is Rs. 29245.47 Cr. and Equity Capital is Rs. 39.96 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    Auto - 2 & 3 WheelersThe Grand Plaza, Plot No. 2, New Delhi Delhi 110070customercare@heromotocorp.com
    http://www.heromotocorp.com
    Management
    NamePosition Held
    Dr. Pawan MunjalExecutive Chairman
    Mr. Vikram S KasbekarExecutive Director
    Ms. Vasudha DinodiaNon Executive Director
    Mr. Suman Kant MunjalNon Executive Director
    Mr. Pradeep DinodiaNon Executive Director
    Ms. Tina TrikhaInd. Non-Executive Director
    Ms. Camille TangInd. Non-Executive Director
    Air M'shal (Retd.) B S DhanoaInd. Non-Executive Director
    Mr. Rajnish KumarInd. Non-Executive Director
    Prof. Jagmohan Singh RajuInd. Non-Executive Director

    FAQ

    What is the latest intrinsic value of Hero MotoCorp Ltd?

    The latest intrinsic value of Hero MotoCorp Ltd as on 26 December 2024 is ₹4447.35, which is 4.03% higher than the current market price of ₹4,275.00. The stock has a market capitalization of 85,492 Cr. and recorded a high/low of 6,246/3,930 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹18,971 Cr and total liabilities of ₹29,261 Cr.

    What is the Market Cap of Hero MotoCorp Ltd?

    The Market Cap of Hero MotoCorp Ltd is 85,492 Cr..

    What is the current Stock Price of Hero MotoCorp Ltd as on 26 December 2024?

    The current stock price of Hero MotoCorp Ltd as on 26 December 2024 is 4,275.

    What is the High / Low of Hero MotoCorp Ltd stocks in FY 2024-2025?

    In FY 2024-2025, the High / Low of Hero MotoCorp Ltd stocks is 6,246/3,930.

    What is the Stock P/E of Hero MotoCorp Ltd?

    The Stock P/E of Hero MotoCorp Ltd is 20.7.

    What is the Book Value of Hero MotoCorp Ltd?

    The Book Value of Hero MotoCorp Ltd is 951.

    What is the Dividend Yield of Hero MotoCorp Ltd?

    The Dividend Yield of Hero MotoCorp Ltd is 2.69 %.

    What is the ROCE of Hero MotoCorp Ltd?

    The ROCE of Hero MotoCorp Ltd is 29.1 %.

    What is the ROE of Hero MotoCorp Ltd?

    The ROE of Hero MotoCorp Ltd is 22.0 %.

    What is the Face Value of Hero MotoCorp Ltd?

    The Face Value of Hero MotoCorp Ltd is 2.00.

    About the Author

    Author Avatar
    Getaka

    Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

    Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Hero MotoCorp Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE