Hero MotoCorp Ltd

Hero MotoCorp is a two-wheeler manufacturer. The Company manufactures and sells motorized two wheelers up to 350 cubic centimeters (cc) engine capacity, spare parts and related services.

Pros:
Company is virtually debt free.
Stock is providing a good dividend yield of 3.36%.
Promoter's stake has increased
Company has a good return on equity (ROE) track record: 3 Years ROE 35.11%
Company has been maintaining a healthy dividend payout of 49.02%
Cons:
The company has delivered a poor growth of 6.28% over past five years.
Promoter holding is low: 34.63%

Peer Comparison Sector: Automobile // Industry: Automobiles - Motorcycles / Mopeds

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Quarterly Results Standalone Figures in Rs. Crores / View Consolidated

Jun 2016 Sep 2016 Dec 2016 Mar 2017 Jun 2017 Sep 2017 Dec 2017 Mar 2018 Jun 2018 Sep 2018 Dec 2018 Mar 2019
7,399 7,796 6,365 6,923 7,980 8,372 7,314 8,564 8,810 9,091 7,865 7,885
6,169 6,427 5,285 5,965 6,685 6,916 6,156 7,193 7,433 7,712 6,760 6,816
Operating Profit 1,230 1,369 1,080 958 1,296 1,456 1,158 1,371 1,377 1,379 1,105 1,069
OPM % 17% 18% 17% 14% 16% 17% 16% 16% 16% 15% 14% 14%
Other Income 120 152 132 118 132 118 110 166 116 224 188 164
Interest 2 2 2 1 2 2 2 2 2 2 2 2
Depreciation 115 119 125 135 133 136 138 148 148 152 152 150
Profit before tax 1,234 1,400 1,085 939 1,293 1,436 1,128 1,387 1,343 1,448 1,138 1,081
Tax % 28% 28% 29% 24% 29% 30% 29% 30% 32% 33% 32% 32%
Net Profit 883 1,004 772 718 914 1,010 805 967 909 976 769 730
Notes Notes Notes Notes Notes Notes Notes Notes Notes Notes Notes Notes

Profit & Loss Standalone Figures in Rs. Crores / View Consolidated

Mar 2007 Mar 2008 Mar 2009 Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 TTM
9,895 10,335 12,319 15,758 19,398 23,579 23,768 25,275 27,585 28,443 28,500 32,230 33,651
8,741 9,005 10,635 13,096 16,865 19,960 20,484 21,735 24,198 23,988 23,866 26,950 28,720
Operating Profit 1,153 1,330 1,684 2,662 2,533 3,619 3,284 3,540 3,387 4,455 4,635 5,280 4,930
OPM % 12% 13% 14% 17% 13% 15% 14% 14% 12% 16% 16% 16% 15%
Other Income 234 243 280 363 290 365 398 446 493 422 522 526 691
Interest 2 2 3 2 15 21 12 12 11 5 6 6 9
Depreciation 140 160 181 191 402 1,097 1,142 1,107 540 438 493 556 602
Profit before tax 1,246 1,410 1,781 2,832 2,405 2,865 2,529 2,867 3,329 4,435 4,658 5,244 5,011
Tax % 31% 31% 28% 21% 20% 17% 16% 26% 28% 29% 28% 30%
Net Profit 858 968 1,282 2,232 1,928 2,378 2,118 2,109 2,386 3,160 3,377 3,697 3,385
EPS in Rs 40.07 45.24 60.79 93.18 79.51 111.79 95.87 94.56 108.26 144.00 169.11 185.15
Dividend Payout % 40% 39% 31% 98% 109% 38% 57% 62% 50% 46% 50% 51%
* Sales is net of excise duty and discounts
Compounded Sales Growth
10 Years:12.05%
5 Years:6.28%
3 Years:5.32%
TTM:4.41%
Compounded Profit Growth
10 Years:14.98%
5 Years:13.42%
3 Years:15.86%
TTM:-8.45%
Return on Equity
10 Years:40.04%
5 Years:35.61%
3 Years:35.11%
Last Year:32.46%

Balance Sheet Standalone Figures in Rs. Crores / View Consolidated

Mar 2007 Mar 2008 Mar 2009 Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
40 40 40 40 40 40 40 40 40 40 40 40 40
Reserves 2,430 2,946 3,761 3,425 2,916 4,250 4,966 5,560 6,501 8,794 10,071 11,729 12,817
Borrowings 165 132 78 66 693 719 642 284 0 0 0 0 0
1,609 1,955 2,206 4,992 7,083 4,886 4,001 4,218 3,987 3,796 4,645 5,036 4,784
Total Liabilities 4,244 5,074 6,085 8,523 10,732 9,895 9,649 10,102 10,528 12,631 14,757 16,805 17,641
1,166 1,156 1,574 1,659 4,080 3,786 3,071 2,243 2,913 3,584 4,396 4,655 4,800
CWIP 190 408 121 48 50 39 62 854 713 605 465 318 361
Investments 1,974 2,567 3,369 3,926 5,129 3,964 3,624 4,089 3,154 4,581 5,890 7,525 5,969
915 942 1,022 2,890 1,473 2,107 2,892 2,916 3,749 3,860 4,006 4,307 6,512
Total Assets 4,244 5,074 6,085 8,523 10,732 9,895 9,649 10,102 10,528 12,631 14,757 16,805 17,641

Cash Flows Standalone Figures in Rs. Crores / View Consolidated

Mar 2007 Mar 2008 Mar 2009 Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018
625 1,212 1,359 2,687 2,254 2,360 1,890 2,963 2,250 3,849 4,028 3,981
-273 -781 -861 -528 -1,322 93 -733 -1,617 12 -2,206 -1,944 -1,915
-493 -432 -500 -2,109 -955 -2,458 -1,056 -1,415 -2,231 -1,687 -2,096 -2,047
Net Cash Flow -142 -1 -2 49 -23 -6 101 -69 32 -44 -12 19

Ratios Standalone / View Consolidated

Mar 2007 Mar 2008 Mar 2009 Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018
ROCE % 47% 45% 47% 71% 64% 60% 42% 45% 51% 55% 48% 46%
Debtor Days 12 10 4 3 2 4 10 13 18 16 20 17
Inventory Turnover 39.41 34.88 38.26 41.29 40.36 39.28 36.22 38.70 37.15 38.22 42.88 43.56