Hero MotoCorp shares jumped over 2% after Macquarie upgraded the stock to outperform and raised its target price to ₹6,793. As of 9:20 AM, the shares were trading 2.07% higher at Rs 5,998.00.
The brokerage said India’s largest two-wheeler manufacturer is finally showing clear signs of stabilisation after several years of market-share pressure. According to Macquarie, Hero’s domestic market share has begun to stabilise, supported by a healthier product cycle, tighter inventory management and improving traction across both motorcycles and scooters.
Macquarie noted that the recent GST reductions have revived demand in the entry-level and mid-level segments, categories where Hero Moto has traditionally held strong positions. The brokerage believes the company’s upcoming launches, along with its expanding electric vehicle portfolio, will reinforce Hero’s competitive strength in both ICE and EV markets. It added that Hero’s EV market share is rising steadily, placing the company in a better position as the EV category becomes increasingly important for long-term growth.
With growth visibility improving, Macquarie said the Street is now more willing to assign a higher valuation multiple to Hero MotoCorp. The brokerage highlighted gains in ICE market share, the ramp-up of EV volumes and consistent margin performance as factors that could support a further re-rating. Macquarie’s upgrade signals its confidence that Hero MotoCorp’s operating cycle has turned meaningfully positive, setting the stage for a stronger phase ahead.
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