Hero MotoCorp Ltd

About [ edit ]

Hero MotoCorp Ltd, led by Dr. Pawan Munjal is in the business of designing and developing motorcycles and scooters for customers around the world.
It has a presence in 40 countries across Asia, Africa, and South & Central America.
Hero MotoCorp is the market leader in India with over 50% share in the domestic motorcycle market.
Hero Motocorp was started as a joint venture with the Honda group in 1984 # which ended in 2010. #
It's headquarter is located in New Delhi (India) #

  • Market Cap 64,409 Cr.
  • Current Price 3,224
  • High / Low 3,629 / 1,475
  • Stock P/E 24.4
  • Book Value 746
  • Dividend Yield 2.79 %
  • ROCE 27.2 %
  • ROE 22.0 %
  • Face Value 2.00

Pros

  • Company is almost debt free.
  • Company has a good return on equity (ROE) track record: 3 Years ROE 26.58%
  • Company has been maintaining a healthy dividend payout of 50.29%

Cons

  • The company has delivered a poor sales growth of 1.22% over past five years.
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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Jun 2018 Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020
8,913 9,168 7,937 7,953 8,186 7,660 7,075 6,334 2,969 9,473 9,827
7,511 7,772 6,828 6,842 7,013 6,516 6,017 5,660 2,852 8,165 8,478
Operating Profit 1,402 1,396 1,109 1,111 1,173 1,144 1,058 673 117 1,308 1,349
OPM % 16% 15% 14% 14% 14% 15% 15% 11% 4% 14% 14%
Other Income 123 224 208 193 970 118 210 157 152 147 206
Interest 8 8 9 11 11 14 12 10 12 11 11
Depreciation 154 157 158 155 242 210 211 183 179 183 180
Profit before tax 1,363 1,454 1,150 1,137 1,890 1,039 1,044 638 78 1,261 1,364
Tax % 32% 32% 33% 31% 34% 15% 13% 4% 26% 24% 25%
Net Profit 920 977 775 771 1,252 879 902 605 59 958 1,019
EPS in Rs 46.09 48.92 38.82 38.62 62.70 44.03 45.15 30.27 2.96 47.98 51.02
Notes Notes Notes Notes Notes Notes Notes Notes Notes Notes Notes

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 TTM
25,275 27,538 28,457 28,610 32,458 33,971 29,254 28,603
21,736 24,186 24,059 24,034 27,133 28,952 25,253 25,156
Operating Profit 3,539 3,352 4,398 4,576 5,325 5,018 4,001 3,447
OPM % 14% 12% 15% 16% 16% 15% 14% 12%
Other Income 444 492 447 839 573 747 1,503 661
Interest 12 12 15 27 31 37 47 44
Depreciation 1,107 540 443 502 575 624 846 724
Profit before tax 2,864 3,292 4,387 4,885 5,292 5,104 4,611 3,340
Tax % 26% 29% 29% 27% 30% 32% 21%
Net Profit 2,103 2,365 3,142 3,584 3,720 3,444 3,638 2,641
EPS in Rs 105.30 118.42 157.34 179.49 186.29 172.44 182.14 132.23
Dividend Payout % 62% 51% 46% 47% 51% 50% 49%
Compounded Sales Growth
10 Years:%
5 Years:1%
3 Years:1%
TTM:-7%
Compounded Profit Growth
10 Years:%
5 Years:6%
3 Years:-5%
TTM:-21%
Stock Price CAGR
10 Years:8%
5 Years:5%
3 Years:-4%
1 Year:57%
Return on Equity
10 Years:%
5 Years:30%
3 Years:27%
Last Year:22%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Sep 2020
40 40 40 40 40 40 40 40
Reserves 5,583 6,500 8,794 10,276 11,932 13,080 14,366 14,873
Borrowings 284 100 232 261 228 312 453 540
4,215 4,014 3,829 4,736 5,197 5,072 4,815 7,507
Total Liabilities 10,122 10,654 12,896 15,312 17,397 18,504 19,674 22,960
2,247 2,952 3,784 4,599 4,961 4,952 6,473 6,545
CWIP 855 719 653 581 355 573 391 208
Investments 4,106 3,118 4,501 6,066 7,669 6,114 8,359 10,853
2,914 3,864 3,958 4,066 4,411 6,865 4,451 5,354
Total Assets 10,122 10,654 12,896 15,312 17,397 18,504 19,674 22,960

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020
2,963 2,186 3,722 4,007 4,017 1,032 5,518
-1,616 31 -2,300 -1,972 -1,858 1,298 -2,819
-1,414 -2,131 -1,475 -2,036 -2,102 -2,252 -2,602
Net Cash Flow -66 86 -53 -1 57 78 97

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020
ROCE % 50% 54% 49% 45% 39% 27%
Debtor Days 13 18 16 20 16 29 19
Inventory Turnover 25.96 23.94 26.15 26.36 21.34 15.77

Shareholding Pattern

Numbers in percentages

Mar 2018 Jun 2018 Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020
34.63 34.63 34.63 34.63 34.63 34.63 34.63 34.63 34.63 34.77 34.76 34.76
41.92 39.61 38.87 39.95 38.19 35.20 36.48 35.29 34.27 32.71 33.29 35.89
12.02 14.38 14.78 15.37 16.08 18.60 19.16 19.56 19.89 21.72 22.85 19.98
11.43 11.38 11.72 10.04 11.10 11.57 9.73 10.52 11.21 10.80 9.10 9.37

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