NAME: – Harsh Solanki Roll No: – 21230023365
BATCH: – Financial Markets Company: – Hero Moto Corp
About the Company: –
- Hero MotoCorp (hereinafter Known AS ‘The Company’ or ‘Hero’) is the World’s largest manufacturer of two -wheelers in term of unit volume. Earlier, Known as Hero Honda Was incorporated in 1984 after the joint venture between Hero Cycle and Honda The agreement terminated in 2011 after which the company’s name was changed to Hero Moto Corp
- The company is headquartered in Delhi and has 8 manufacturing facilities with an annual production capacity of 5 million. 6 capacities are estimated across India in where the other 2 are in Columbia and Bangladesh. It has set up 2 R&D CENTRAL and Latin American, middle East. It has announced to enter the UK and key European markets in 2024.
- The company is engaged in manufacturing and selling motorcycles, scooter, parts, and other related services. It offers motorcycles in all 3 segments- Entry, Deluxe, and premium and has a strong brand portfolio. The Company has also entered into EV business with the launch of its EV scooter brand
- The Motorcycle segments dominantly contributes about 93% to volumes while scooter contributes 7% to volumes. About 97% of the company’s volume comes from domestic markets and 3% from
Company Data (as on 28 Feb.2024)
- Market Cap₹ 87,651
- Current Price₹ 4,383
- High / Low₹ 4,980 / 2,246
- Stock P/E23.6
- Book Value₹ 884
- Dividend 29 %
- 7 %
- 7 %
- Face Value₹ 00
- Debt to 04
Peer comparison
|
.No. |
Name |
CMP Rs. |
P/E |
Mar Cap R |
Div Yld % |
NP Ǫtr Rs. |
Ǫtr Profit V |
Sales Ǫtr R |
Ǫtr Sales V |
ROCE % |
|
1 |
Eicher Mot |
3865.45 |
27.59 |
105843.5 |
0.96 |
995.97 |
34.44 |
4178.84 |
12.3 |
27.35 |
|
2 |
TVS Motor |
2100.05 |
61.01 |
99754.68 |
0.24 |
509.61 |
58.87 |
10113.94 |
25.39 |
13.19 |
|
3 |
Hero Moto |
4383.25 |
23.58 |
87651.47 |
2.29 |
1091.12 |
51.28 |
9787.86 |
20.56 |
22.72 |
|
4 |
Wardwizar |
68.75 |
158.33 |
1792.26 |
0.15 |
5.7 |
66.18 |
106.29 |
52.21 |
17.73 |
|
|
Median: 4 |
2982.75 |
44.3 |
93703.07 |
0.6 |
752.79 |
55.08 |
6983.35 |
22.98 |
20.23 |
Balance Sheet
|
|
Mar-21 |
Mar-22 |
Mar-23 |
Sep-23 |
|
|
Equity Capital |
40 |
40 |
40 |
40 |
|
|
Reserves |
|
15,376 |
15,807 |
16,616 |
17,634 |
|
Borrowings + |
584 |
605 |
568 |
651 |
|
|
Other Liabilities + |
7,096 |
6,027 |
6,694 |
7,986 |
|
|
Total Liabilities |
23,096 |
22,478 |
23,917 |
26,311 |
|
|
Fixed Assets + |
6,380 |
6,194 |
6,159 |
6,414 |
|
|
CWIP |
|
495 |
517 |
454 |
175 |
|
Investments |
10,582 |
10,528 |
10,891 |
11,218 |
|
|
Other Assets + |
5,639 |
5,240 |
6,413 |
8,505 |
|
|
Total Assets |
23,096 |
22,478 |
23,917 |
26,311 |
|
Compounded Sales Growth
|
10 Years: |
% |
|
5 Years: |
1% |
|
3 Years: |
5% |
|
TTM: |
10% |
Compounded Profit Growth
|
10 Years: |
% |
|
5 Years: |
-5% |
|
3 Years: |
-4% |
|
TTM: |
43% |
GDP Growth Projections
|
GDP Growth |
FY 2021-22 |
FY 2022-23 |
FY 2023-24 |
|
World Output |
3.4 |
2.8 |
3 |
|
Advanced Economies |
2.7 |
1.3 |
1.4 |
|
United States |
2.1 |
1.6 |
1.1 |
|
Euro Area |
3.5 |
0.8 |
1.4 |
|
UK |
4 |
-0.3 |
1 |
|
Emerging markets |
4 |
3.9 |
4.2 |
|
China |
3 |
5.2 |
4.5 |
|
India |
6.8 |
5.9 |
6.3 |
|
Russia |
-2.1 |
0.7 |
1.3 |
|
Middle East and Central Asia |
5.3 |
2.9 |
3.5 |
|
Sub-Saharan Africa |
3.9 |
3.6 |
4.2 |
|
Source: IMF, April 2023 |
|
|
|
Nifty 100 with Hero MotoCorp
|
Date |
Nifty 100_Weekly Returns |
sales Weekly Returns |
|
25-Jan-24 |
21252.60 |
19.10 |
|
19-Jan-24 |
21522.40 |
14.10 |
|
12-Jan-24 |
21794.55 |
14.90 |
|
05-Jan-24 |
21610.80 |
16.95 |
|
29-Dec-23 |
21631.40 |
23.65 |
|
22-Dec-23 |
21249.40 |
12.75 |
|
15-Dec-23 |
21356.65 |
11.45 |
|
08-Dec-23 |
20869.40 |
-1.90 |
|
01-Dec-23 |
20167.90 |
-6.85 |
|
24-Nov-23 |
19694.70 |
-10.80 |
|
17-Nov-23 |
19631.80 |
-10.70 |
|
10-Nov-23 |
19325.35 |
-11.90 |
|
03-Nov-23 |
19130.60 |
-15.10 |
|
27-Oct-23 |
18947.25 |
-16.05 |
|
20-Oct-23 |
19442.65 |
-13.10 |
|
13-Oct-23 |
19651.05 |
-11.10 |
|
06-Oct-23 |
19553.50 |
-11.15 |
|
29-Sep-23 |
19538.30 |
-6.15 |
|
22-Sep-23 |
19574.25 |
-6.80 |
|
15-Sep-23 |
20092.35 |
-3.65 |
|
08-Sep-23 |
19719.95 |
-1.10 |
|
01-Sep-23 |
19335.30 |
-3.05 |
|
25-Aug-23 |
19165.80 |
-14.35 |
|
18-Aug-23 |
19210.15 |
-15.65 |
|
11-Aug-23 |
19328.30 |
-8.90 |
|
04-Aug-23 |
19417.00 |
-6.00 |
SUMMARY OUTPUT
|
Regression Statistics |
|
|
Multiple R |
0.851475743 |
|
R Square |
0.725120644 |
|
Adjusted R Square |
0.719383284 |
|
Standard Error |
5.823082396 |
|
Observations |
100 |
ANOVA
|
|
df |
SS |
MS |
F |
Significance F |
|
Regression |
1 |
4294.7223 |
8294.899 |
136.6558173 |
4.62E-15 |
|
Residual |
98 |
1628.021 |
34.6294 |
|
|
|
Total |
99 |
59225.05 |
|
|
|
|
|
Coefficients |
Standard Error |
t Stat |
P-value |
Lower 95% |
Upper 95% |
Lower 95.0% |
Upper 95.0% |
|
Intercept |
-145.584 |
12.22734835 |
-11.90646802 |
6.19649E-16 |
-170.1692637 |
-120.9998005 |
-170.1692637 |
-120.9998005 |
|
Nifty 100_Weekly Returns |
0.007163399 |
0.000636597 |
11.25264705 |
4.62411E-15 |
0.005883436 |
0.008443363 |
0.005883436 |
0.008443363 |