HEROMOTOCO - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

🏍️ Investment Analysis: HEROMOTOCO (Hero MotoCorp Ltd.)

Investment Rating: 4.4

🧠 Fundamental Strengths

ROCE: 30.3% and ROE: 23.0% showcase stellar capital efficiency and return generation.

PEG Ratio of 0.85 signals strong earnings growth at a reasonable valuation — a positive long-term indicator.

Debt-to-Equity of 0.04 means minimal leverage risk.

Dividend Yield of 3.81% enhances its appeal for income-seeking investors.

EPS of ₹219 is robust, and Qtr Profit Var: +24.2% suggests accelerating profitability.

📊 Valuation & Trend Indicators

P/E of 20.3 vs Industry PE of 31.1 makes Hero MotoCorp relatively undervalued.

Trading slightly below DMA 50 (₹4,268) and DMA 200 (₹4,292) — neutral zone; awaiting breakout confirmation.

RSI of 50.6 reflects balanced momentum.

MACD is positive (7.28), indicating emerging bullish sentiment.

🔎 Ideal Entry Price Zone: ₹3,600 – ₹4,000 This range is closer to the recent low of ₹3,323, ensuring value buying while minimizing downside risk.

🚀 Holding/Exit Strategy (If Already Holding)

If you already hold the stock, especially below ₹4,000, it's a solid long-term candidate.

Suggest holding for 5–7 years, supported by strong ROE, consistent profitability, and attractive dividends.

Track upcoming quarters for consistent EPS growth and sustained ROCE.

Exit Strategy

Partial booking near ₹5,800–₹6,000, based on historical resistance zones.

If fundamentals weaken or PEG rises beyond 1.5, reassess position.

Maintain exposure if dividend yield remains above 3% and ROCE stays above 25%.

Would you like to layer in a peer comparison or get a visual chart on its price trend and fundamental momentum? I can whip one up.

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