ftInvstr
HEROMOTOCO · Consumer Cyclical ₹5385.0 -1.7% Mkt Cap ₹107664 Cr undervalued

HEROMOTOCO

Consumer Cyclical Auto Manufacturers
₹5385.0
-1.7% today · 30d +9.79%
as of 2026-11-09
Price · Daily Candles
“Hero MotoCorp rides strong earnings surge as FIIs re-enter, but technicals flag caution.”
Hero MotoCorp posted a robust Q4 2026 with revenue up 30.18% YoY to ₹12,978 Cr and net profit jumping 26.11% YoY to ₹1,474 Cr. The company's annual net profit growth for 2026 surged 31.99% YoY, reflecting strong fundamentals. FIIs increased their stake by 1.71% QoQ to 31.15%, signaling renewed interest.
BULL CASE
+Q4 2026 revenue increased by 30.18% YoY to ₹12,978 Cr, while net profit grew 26.11% YoY to ₹1,474 Cr.
+Annual net profit witnessed a significant jump of 31.99% YoY for the year ended March 2026 to ₹5,776 Cr.
+Promising EBIT growth predictions: with strong ranks of 0.717 for 1-year EBIT growth in the recent 2 years, and 0.78 for stable 7-year EBIT growth.
+FIIs increased their holding by 1.71% QoQ, now owning 31.15% of the company as of March 2026.
BEAR CASE
−Despite strong fundamentals, the stock price has seen a 15.14% decline over the last 6 months and is 21.94% off its 52-week high.
−The 3-month share price return is -10.82%, indicating recent negative momentum.
−Operating profit margin (OPM) saw a slight decline of 0.58% YoY in Q4 2026, despite revenue growth.
−Machine learning predictions for free cash flow (FCF) indicate potential future compression, with a rank of 0.147 for recent 2-year FCF growth and 0.077 for stable 7-year FCF growth.
⟳ What Changed
₹ Latest Earnings · Q ending 2026-09-30
REVENUE
₹14970 Cr
+22.52% YoY
NET PROFIT
₹1861 Cr
+40.85% YoY
OPM
14.49%
-2.4pp YoY
EPS
₹92.99
PE 17.38
Intrinsic value · DCF ₹6822.32 · Margin of safety +26.7% (undervalued) · FCF yield 6.7%
◇ Sector Position
Hero MotoCorp trades at a TTM P/E of 17.38 and ROCE of 36.0%, appearing more attractive than peers like TVSMOTOR (P/E 73.44, ROCE 27.27%) and MARUTI (P/E 28.29, ROCE 25.07%).
PEERPEROCE %
HEROMOTOCO17.3836.0
MARUTI28.2925.07
M&M21.8218.44
BAJAJ-AUTO27.5325.93
+ 2 more peers — sign in to view
ML Forward Growth Predictions 🔒

9 ML-predicted forward-growth ranks across sales, EBIT, and FCF.

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66
SCORE / 100
Overall
6-axis composite of the sections below.
Performance POSITIVE 55
Valuation CHEAP 75
Growth STRONG 79
Profitability HIGH 78
Technicals NEUTRAL 57
Risk MODERATE 50
Key Stats
TTM PE
17.38
P/B
4.61
52W HIGH
₹6388.5
OFF HIGH
-15.71%
DIV YIELD
3.72%
MKT CAP
₹107664 Cr
◉ Active Signals
MACDBullish38.7363
RSI(14)Neutral56.28
Street Consensus
35 analysts
₹5931.89
mean target
Low ₹4250.0Now ₹5385.0High ₹7800.0
⧉ Strategy Fit 🔒

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