Nov. 12 at 4:55 PM
$HEROMOTOCO.NSE
“Hero MotoCorp – उत्सव की सवारी और दमदार नतीजों की तैयारी, क्या कल शेयर दिखाएगा नई रफ़्तार?”
Technical Chart Analysis
$HERO MotoCorp closed around ₹5,500 levels and continues to show positive momentum on the daily charts.
The
$STOCK is trading above its 20-day and 50-day moving averages, indicating ongoing strength in the short term.
RSI stands around 64–68, suggesting bullish sentiment but hinting at mild overbought conditions.
Immediate support lies near ₹5,200–₹5,300, while resistance is seen near ₹5,700–₹5,800.
A sustained breakout above ₹5,800 could lead to further upside toward ₹6,000+, whereas failure to
hold ₹5,200 may lead to mild profit booking.
Fundamental Analysis
$HEROMOTOCO.NSE MotoCorp is India’s largest two-wheeler manufacturer with a strong domestic presence and growing export base.
The
$COMPANY has a market capitalization of around ₹1.1 lakh crore, a P/E ratio of 21.5x, and a strong ROCE of 28.7% — reflecting efficient capital utilization.
It has a very low debt-to-equity ratio (0.03), providing excellent balance sheet strength.
Over the last few years, Hero MotoCorp has shown stable profitability despite moderate revenue growth (2.4% CAGR).
Profit CAGR stands around 9–10%, supported by cost control and premium segment launches.
Result Outlook (11 November 2025)
Hero MotoCorp will declare its Q2 FY25 results tomorrow (11 Nov).
Analysts expect steady performance with a possible uptick in profit margins supported by stable raw material prices and festive demand recovery.
The focus will be on volume growth in 100–125cc segment, export momentum, and contribution from EV (Vida) division.
If revenue and margins expand as expected, the result could trigger a positive breakout.
However, any weak commentary or lower-than-expected demand recovery could limit the upside.
Key Positives
Strong brand leadership: Hero continues to dominate the domestic two-wheeler space with a trusted brand image.
Debt-free balance sheet: Provides high financial flexibility and safety during market slowdowns.
New product launches: The company is focusing on premium bikes and EVs under the “Vida” brand.
Export growth: Expanding presence in Southeast Asia, Africa, and Europe supports long-term growth.
Favorable raw material trend: Lower steel and rubber prices help protect profit margins.
Key Negatives / Risks
Two-wheeler demand remains sensitive to rural consumption and fuel prices.
Raw material cost volatility (metal & rubber) may affect operating margins.
Valuations are slightly above historical average, limiting near-term upside.
Competition from TVS, Bajaj, and EV entrants may pressure market share.
News & Events Impact
Festive Season Demand: September-October two-wheeler sales data showed strong recovery — a positive sentiment driver.
GST Reduction Discussion: If government reduces GST on two-wheelers, it could boost sales volume in coming quarters.
New Product Launches: Hero is expanding its “Vida” electric scooter line in domestic and export markets, improving investor sentiment.
Impact: These developments indicate a positive bias ahead of results, though actual financials will confirm momentum.
Key Levels to Watch
Short-Term Support: ₹5,200–₹5,300
Immediate Resistance: ₹5,700–₹5,800
Breakout Zone: Above ₹5,800 could lead to ₹6,000–₹6,200 levels.
Long-Term Accumulation Zone: ₹5,000–₹5,200 with target of ₹6,500+ (6–12 months).
Stop-Loss for Traders: Below ₹5,000.
Brokers’ View
Most brokerage houses maintain a “Buy to Hold” rating on
$HERO MotoCorp with price targets between ₹6,000–₹6,500.
They expect volume-led growth in FY26 supported by new launches, cost optimization, and EV expansion.
Some analysts remain cautious about the entry-level segment recovery, but overall sentiment remains constructive.
Will the Rally Sustain?
$HERO MotoCorp has shown strength in recent sessions due to improved auto sales data and optimism ahead of results.
If Q2 numbers meet or exceed estimates, the rally could extend toward ₹5,800–₹6,000.
However, if profit growth or commentary disappoints, short-term profit booking may emerge.
Disclaimer & Disclosure
This report is for educational and informational purposes only.
It should not be considered investment advice or a recommendation to buy/sell securities.
Stock market investments are subject to risk and volatility.
Please consult your SEBI-registered financial advisor before investing.
Investogainer Research and the author have no financial interest or holding in Hero MotoCorp Ltd at the time of publication.
For more information, visit: www.investogainerresearch.com
