Hero MotoCorp: Mixed Signals for India’s Two-Wheeler Giant

Hero MotoCorp

: Mixed Signals for India’s Two-Wheeler Giant Strengths TTM EPS shows strong growth Low debt company with clean balance sheet Quarterly and annual EPS improving consistently Book value up for 2 straight years Operating profit margin and YoY profit growth turned positive in recent results Concerns QoQ decline in net profit and profit margins Revenue falling for 2 consecutive quarters Stock is below 200 DMA, 50 DMA & 20 DMA — technically weak FIIs trimmed their stake from 27.96% to 27.43% in the latest quarter Valuation Comfort PE ratio is lower than 3, 5 & 10-year averages — valuation attractive if turnaround plays out Shareholding Snapshot (Mar 2025) Promoters: 34.74% (unchanged, no pledge) FIIs: ↓ to 27.43% DIIs: ↑ to 27.90% Public: ↑ to 8.03% 3-Year CAGR Growth Revenue: 6.87% Net Profit: 8.67% Operating Profit: 10.03% Takeaway: Hero’s fundamentals remain strong, but near-term performance is under pressure. A potential value pick for long-term investors if demand picks up. Watch upcoming quarters for revenue revival and rural market sentiment. Lesson: Even established names go through cycles the key is spotting when value meets recovery potential.