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Last Updated on: 07 July, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 500182 | NSE: HEROMOTOCO

Fundamental Analysis of Hero MotoCorp Ltd

About the Company - Hero MotoCorp Ltd

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 MunjalExe.Chairman & W T D
Mr. Vikram S KasbekarWhole Time 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

Basic Stock Data of Hero MotoCorp Ltd

Last Updated: July 6, 2024, 12:04 pm

Market Cap 1,11,123 Cr.
Current Price 5,558
High / Low5,895/2,889
Stock P/E28.8
Book Value 885
Dividend Yield2.07 %
ROCE29.8 %
ROE22.5 %
Face Value 2.00
PEG Ratio-205.94

Competitors of Hero MotoCorp Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Eicher Motors Ltd 1,29,807 Cr. 4,7374,978/3,15932.4 6591.08 %31.1 %24.2 % 1.00
Bajaj Auto Ltd 2,69,012 Cr. 9,63610,039/4,54134.8 1,0370.83 %33.5 %26.5 % 10.0
TVS Motor Company Ltd 1,15,456 Cr. 2,4302,525/1,29568.5 1430.33 %18.8 %27.4 % 1.00
Industry Average171,425.00 Cr5,601.0045.23613.000.75%27.80%26.03%4.00

Hero MotoCorp Ltd Quarterly Results

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: July 7, 2024, 6:08 am

Hero MotoCorp Ltd Quarterly Chart

Hero MotoCorp Ltd Profit & Loss

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales25,27527,53828,45728,61032,45833,97129,25430,95929,55134,15834,937
Expenses21,72224,01824,03324,02527,12428,94625,18426,90226,29530,06030,429
Operating Profit3,5533,5204,4244,5855,3345,0254,0704,0583,2564,0994,508
OPM %14%13%16%16%16%15%14%13%11%12%13%
Other Income4303254218305647411,434553545567781
Interest12121527313747465310589
Depreciation1,107540443502575624846715690697719
Profit before tax2,8643,2924,3874,8855,2925,1044,6113,8493,0583,8644,481
Tax %26%29%29%27%30%32%21%24%24%28%
Net Profit2,1022,3643,1123,5463,7223,4663,6592,9362,3292,8003,240
EPS in Rs105.30118.42157.34179.49186.29172.44182.14146.05115.95140.61162.50
Dividend Payout %62%51%46%47%51%50%49%72%82%71%

Hero MotoCorp Ltd 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 Growth

Compounded Sales Growth
10 Years:4%
5 Years:2%
3 Years:7%
TTM:11%
Compounded Profit Growth
10 Years:7%
5 Years:3%
3 Years:11%
TTM:42%
Stock Price CAGR
10 Years:8%
5 Years:17%
3 Years:24%
1 Year:84%
Return on Equity
10 Years:24%
5 Years:19%
3 Years:18%
Last Year:22%

Last Updated: June 28, 2024, 6:37 pm

Hero MotoCorp Ltd Balance Sheet

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital4040404040404040404040
Reserves5,5836,5008,79410,27611,93213,08014,36615,37615,80716,61617,634
Borrowings284100232261228312453584605568651
Other Liabilities4,2154,0143,8294,7365,1975,0724,8157,0966,0276,6947,986
Total Liabilities10,12210,65412,89615,31217,39718,50419,67423,09622,47823,91726,311
Fixed Assets2,2472,9523,7844,5994,9614,9526,4736,3806,1946,1596,414
CWIP855719653581355573391495517454175
Investments4,1063,1184,5016,0667,6696,1148,35910,58210,52810,89111,218
Other Assets2,9143,8643,9584,0664,4116,8654,4515,6395,2406,4138,505
Total Assets10,12210,65412,89615,31217,39718,50419,67423,09622,47823,91726,311

Hero MotoCorp Ltd Reserves and Borrowings Chart

Hero MotoCorp Ltd Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 2,9632,1863,7224,0074,0171,0325,5184,1102,1042,614
Cash from Investing Activity -1,61631-2,300-1,972-1,8581,298-2,819-2,289-222-421
Cash from Financing Activity -1,414-2,131-1,475-2,036-2,102-2,252-2,602-1,852-1,975-2,147
Net Cash Flow-6686-53-1577897-31-9445

Hero MotoCorp Ltd 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-33-14-11-17-148-7-17-9-429
ROCE %50%54%48%45%39%27%24%18%23%

Hero MotoCorp Ltd Financial Efficiency Indicators Chart

Hero MotoCorp Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters34.76%34.76%34.76%34.75%34.75%34.78%34.78%34.78%34.78%34.78%34.76%34.76%
FIIs37.19%34.97%32.28%29.57%29.22%28.84%27.79%27.48%27.01%28.10%26.80%28.34%
DIIs18.68%20.23%21.97%23.69%24.24%25.58%26.89%27.30%27.86%27.28%29.14%28.09%
Public9.37%10.05%11.00%11.99%11.79%10.81%10.55%10.45%10.36%9.85%9.30%8.80%
No. of Shareholders2,10,8272,87,5483,43,8983,98,5384,04,0563,68,7213,49,5223,27,7733,33,0543,13,1043,01,4982,80,547

Hero MotoCorp Ltd Shareholding Pattern Chart

No. of Hero MotoCorp Ltd Shareholders

Hero MotoCorp Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Nifty 50 ETF2,352,4450.631087.191,000,0002024-07-05135.24%
ICICI Prudential Bluechip Fund2,157,9302997.31,000,0002024-07-05115.79%
Kotak Flexicap Fund - Regular Plan1,700,0001.77785.661,000,0002024-07-0570%
SBI Blue Chip Fund1,000,0001.07462.161,000,0002024-07-050%
Kotak Multicap Fund991,0315.13458.011,000,0002024-07-05-0.9%
Kotak Equity Opportunities Fund - Regular Plan974,8002.46450.511,000,0002024-07-05-2.52%
DSP Mid Cap Fund862,3482.41398.541,000,0002024-07-05-13.77%
ICICI Prudential Business Cycle Fund739,1944.3341.621,000,0002024-07-05-26.08%
Tata Equity P/E Fund - Regular Plan737,8554.763411,000,0002024-07-05-26.21%
Tata Equity P/E Fund - Regular Plan - Trigger Option A 5%737,8554.763411,000,0002024-07-05-26.21%

Hero MotoCorp Ltd ROCE Trend

Hero MotoCorp Ltd EPS Trend

Hero MotoCorp Ltd 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) (%)0.0071.1181.9265.0453.25
Dividend Payout Ratio (CP) (%)0.0056.9763.1352.2343.20
Earning Retention Ratio (%)0.0028.8918.0834.9646.75
Cash Earning Retention Ratio (%)0.0043.0336.8747.7756.80
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 (%)0.0028.8818.0734.9546.74
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

Hero MotoCorp Ltd Profitability Ratios (%)

Hero MotoCorp Ltd Liquidity Ratios

Hero MotoCorp Ltd Liquidity Ratios (%)

Hero MotoCorp Ltd Interest Coverage Ratios (X)

Hero MotoCorp Ltd Valuation Ratios

Fair Value

Fair Value: 5,853.51

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.

Undervalued: 5.32% compared to the current price 5558

Intrinsic Value: 5,845.32

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 5.17% compared to the current price ₹5558

Last 5 Year EPS CAGR: -0.14%

*Investments are subject to market risks

Strength and Weakness of Hero MotoCorp Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 29.82%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -8.09, 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 (12,360.36 cr) compared to borrowings (388.91 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.

    Should I Buy Hero MotoCorp Ltd Share Now?

    • 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: 31.65%)
        • 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: 24.45%)
        • 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: 28.8 (Industry average Stock P/E: 33.05)
        • 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: ★★★★☆

    FAQ

    What is the latest fair value of Hero MotoCorp Ltd?

    The latest fair value of Hero MotoCorp Ltd is ₹5853.51.

    What is the Market Cap of Hero MotoCorp Ltd?

    The Market Cap of Hero MotoCorp Ltd is 1,11,123 Cr..

    What is the current Stock Price of Hero MotoCorp Ltd as on 06 July 2024?

    The current stock price of Hero MotoCorp Ltd as on 06 July 2024 is 5,558.

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

    In FY 2024, the High / Low of Hero MotoCorp Ltd stocks is 5,895/2,889.

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

    The Stock P/E of Hero MotoCorp Ltd is 28.8.

    What is the Book Value of Hero MotoCorp Ltd?

    The Book Value of Hero MotoCorp Ltd is 885.

    What is the Dividend Yield of Hero MotoCorp Ltd?

    The Dividend Yield of Hero MotoCorp Ltd is 2.07 %.

    What is the ROCE of Hero MotoCorp Ltd?

    The ROCE of Hero MotoCorp Ltd is 29.8 %.

    What is the ROE of Hero MotoCorp Ltd?

    The ROE of Hero MotoCorp Ltd is 22.5 %.

    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