HEROMOTOCO

Hero MotoCorp’s (HMCL) 4QFY25 margins remained stable YoY and were also in line with our estimates. Reported EBITDA margin came in at 14.2%, while ICE margins stood at 16.1%, adjusted for the INR 1.43b loss in EV business. Outlook We expect HMCL to deliver a volume CAGR of 5% over FY25-27, driven by new launches and a ramp-up in exports. HMCL will also benefit from a gradual rural recovery, given strong brand equity in the economy and executive segments. The stock looks attractive at 16.6x/15.3x FY26E/27E EPS. We reiterate BUY with a TP of INR 4,761 (17x FY27E EPS + INR 110/INR 140 for Hero FinCorp/ Ather post 20% Holdco discount).