Avendus has maintained an ‘Add’ rating on Hero MotoCorp, raising the target price to ₹4,675 from ₹4,425. The new target suggests a modest upside of around 0.2% from the current market price of ₹4,666.10.
The brokerage noted that new model launches and sustained volume momentum will be key areas to monitor going forward. It also highlighted Hero’s increased emphasis on the electric two-wheeler segment, which is expected to shape the company’s long-term growth trajectory.
Hero MotoCorp has committed a ₹600 crore capital expenditure towards diversifying into non-auto business verticals, reinforcing its intent to broaden revenue streams beyond the core automobile sector.
Avendus projects the company’s exit EBITDA margin to be approximately 14.5% for FY27E, reflecting improved operational efficiency. Furthermore, volume CAGR is expected to remain in the range of 3–4% between FY25 and FY27E, driven by both traditional and EV product portfolios.
Disclaimer: The views and recommendations expressed by Avendus are their own and do not represent the opinion of this publication. Investors are advised to consult a certified financial advisor before making any investment decisions.
