Hero MotoCorp shares fell 2% after global brokerage firm Jefferies downgraded the stock to underperform and sharply cut its target price to ₹3,200 from ₹5,075 — a 37% reduction. The downgrade comes amid concerns over Hero Moto’s declining market share and weak growth outlook in the two-wheeler industry.
Jefferies highlighted that Hero MotoCorp’s domestic two-wheeler market share has plunged to a 20-year low. In contrast, competitors like TVS Motor have gained ground, with TVS now holding its highest market share in 18 years.
The brokerage also slashed its FY26-27 Earnings Per Share (EPS) estimates for Hero MotoCorp by 11%, citing growing competition and slower volume growth across the sector.
Additionally, Jefferies has trimmed its two-wheeler industry volume growth forecasts by six percentage points for FY26 and two points for FY27. Still, it expects a 10% CAGR over FY25-28.
Hero MotoCorp shares opened at ₹3,901 and hit a high of ₹3,902.90, with a low of ₹3,821.20 today. The stock remains significantly below its 52-week high of ₹6,246.25 but is still above the 52-week low of ₹3,344.00.
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