Heromotocorp fundamental analysis

can someone analyse fundamentals of heromotocorp
its at pe of 16, nifty presently at 23 pe ratio.

with perspective of its current business, it is facing any problem
or its price may go upward if relief from covid cases worldwide.

Electric is the name of the game, right now. So, anything ESG related, renewables, EVs, etc. are in favour and anything fossil fuel related is out of flavour.

Also, they have a competitor named hero electric. It is owned by hero motors company which is different from hero motocorp.

This stock is on my radar.

Growing competition in the electric space is the main reason for short term underperformance.

I’m bullish though. It holds 40% stake in at her energy and is ready to launch its own e-vehicle too.

Valuations have factored in the worst I feel.

Disclaimer : invested and willing to invest more

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I feel in the automobile sector you can consider Tata Motors for the long term. You can also consider auto ancillary companies like ‘Motherson Sumi’. Recently, this company performance has got affected due to the pandemic but this company is fundamentally very strong and has a good client base such as Mercedez-Benz, Audi, BWM, etc. Apart from that ‘Motherson’ has also made a number of acquisitions globally which makes this company a well-diversified global player.

You can watch the complete fundamental analysis here: Motherson Sumi Fundamentals | Long Term Analysis | News | Stock Tips | Stock Market | #motherson - YouTube

Apart from the auto sector, TATA Consumer is very attractive at the current point in time.

You can watch the complete fundamental analysis here: Tata Consumer Long Term Analysis | Share News | Fundamental Analysis | Stock Market Tips | TATA NEWS - YouTube

Disclaimer: This is my personal opinion, I do no suggest you to buy or sell a stock. Analyse a stock yourself or consult your investment adviser before making any decision.

Heromotocorp is a fundamentally very strong company with huge reserves and negligible debt.


There is weakness in this stock because autosector as a whole is facing a lot of problems. Some of them are:
a) Rise in input cost due to rise in price of steel and other metals.

In a sector where the profit margins are low ( around 6-8%) rise in input cost can hit the profitability badly. The company has still not reached the profitability levels of 2018.
b) Reduced demand: There was reduced demand due to lockdown and rise in input cost being passed to consumers along with rise in fuel prices.
c) Electronic chip shortage: The company’s production capacity is definitely affected by the gloabl chip shortage.
d) Although it has two startups which work on electric bikes called Ather energy and Taiwanese company Gogoro, their homegrown products are still behind schedule.

Actionable input: Auto sector around the world is doing poorly, not just India. If you wish to invest, do it in small quantities at significant support levels maybe every 15-20% down. Accumulate slow and steady. There is a bull move pending in this sector from a very long time.

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if you see the technicals we have good support at 2270. Lets hope the next pullback takes it to that level. Can be a good buying oppurtunity near the area of support. Fundamentally I find TVS motor to be a better investment with regards to two wheelers.

nice analysis