Macquarie has upgraded Hero MotoCorp to outperform and raised its target price to ₹6,793, saying the country’s largest two-wheeler manufacturer is now showing clear signs of stabilisation after several years of market-share pressure. The brokerage said domestic market share has steadied, supported by a healthier product cycle, better 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, where Hero Moto has traditionally held strong positions. The brokerage believes new launches, coupled with Hero’s expanding electric vehicle portfolio, will strengthen the company’s competitive footing both in ICE and EV categories. It added that Hero’s EV market share is improving steadily, positioning the company more favourably in a segment that will be increasingly important for long-term growth.
According to Macquarie, the Street is now more willing to assign a higher multiple to the stock as visibility around growth improves. The brokerage cited market-share gains in ICE models, the ramp-up of electric two-wheeler volumes and consistent margin performance as key catalysts that could drive a re-rating. Macquarie’s upgrade reflects confidence that Hero MotoCorp’s operating cycle has turned meaningfully positive.
Disclaimer: The views above are those of Macquarie. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
