Hero MotoCorp Ltd

Hero MotoCorp Ltd

₹ 4,219 0.12%
22 Apr 10:52 a.m.
About

Hero Moto Corp earlier also known as “Hero Honda” is one of India’s first motorcycle manufacturers.
The company started in 1984 as a Technological collaboration with Honda, Japan. Before this collaboration, Hero was selling Cycles under the brand name, Hero Cycles.
In 2011, Honda group sold its 26% stake in the company to the Munjals (promoters) and ended the JV. Post the termination of JV, the name of the company was changed to Hero Motocorp. [1] [2]

Key Points

Products & Brands
Premium Segment : Karizma XMR, H-D X440, MAVRICK 440. It has 7 models in 2024. It has Sports, Adventure, Roadster bikes.[1]. The Premium segment contributed ~25% to the revenue mix Q3FY24.[2]

  • Market Cap 84,345 Cr.
  • Current Price 4,219
  • High / Low 4,980 / 2,443
  • Stock P/E 22.7
  • Book Value 884
  • Dividend Yield 2.35 %
  • ROCE 22.7 %
  • ROE 16.7 %
  • Face Value 2.00

Pros

  • Company is almost debt free.
  • Company has been maintaining a healthy dividend payout of 75.0%

Cons

  • The company has delivered a poor sales growth of 1.03% over past five years.

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.

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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023
9,827 8,690 5,503 8,539 8,013 7,497 8,448 9,158 8,118 8,434 8,851 9,533 9,788
8,478 7,463 5,119 7,516 7,030 6,661 7,527 8,096 7,177 7,345 7,734 8,174 8,403
Operating Profit 1,349 1,227 384 1,023 983 836 920 1,062 942 1,089 1,117 1,360 1,385
OPM % 14% 14% 7% 12% 12% 11% 11% 12% 12% 13% 13% 14% 14%
206 106 145 158 140 131 56 94 265 238 66 213 288
Interest 11 13 13 14 13 13 14 48 24 19 21 25 23
Depreciation 180 174 173 174 174 168 173 173 172 180 180 187 194
Profit before tax 1,364 1,147 343 993 936 786 789 936 1,011 1,128 982 1,360 1,456
Tax % 25% 23% 25% 25% 25% 21% 26% 27% 29% 28% 29% 26% 25%
1,029 885 256 748 704 621 586 682 721 811 701 1,007 1,091
EPS in Rs 51.02 44.10 12.82 37.32 35.22 30.60 29.55 34.45 36.33 40.29 35.53 50.35 54.70
Raw PDF

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 TTM
25,275 27,538 28,457 28,610 32,458 33,971 29,254 30,959 29,551 34,158 36,606
21,722 24,018 24,033 24,025 27,124 28,946 25,184 26,902 26,295 30,060 31,655
Operating Profit 3,553 3,520 4,424 4,585 5,334 5,025 4,070 4,058 3,256 4,099 4,951
OPM % 14% 13% 16% 16% 16% 15% 14% 13% 11% 12% 14%
430 325 421 830 564 741 1,434 553 545 567 804
Interest 12 12 15 27 31 37 47 46 53 105 88
Depreciation 1,107 540 443 502 575 624 846 715 690 697 740
Profit before tax 2,864 3,292 4,387 4,885 5,292 5,104 4,611 3,849 3,058 3,864 4,926
Tax % 26% 29% 29% 27% 30% 32% 21% 24% 24% 28%
2,102 2,364 3,112 3,546 3,722 3,466 3,659 2,936 2,329 2,800 3,610
EPS in Rs 105.30 118.42 157.34 179.49 186.29 172.44 182.14 146.05 115.95 140.61 180.87
Dividend Payout % 62% 51% 46% 47% 51% 50% 49% 72% 82% 71%
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%
Stock Price CAGR
10 Years: 7%
5 Years: 10%
3 Years: 14%
1 Year: 71%
Return on Equity
10 Years: %
5 Years: 19%
3 Years: 17%
Last Year: 17%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Sep 2023
Equity Capital 40 40 40 40 40 40 40 40 40 40 40
Reserves 5,583 6,500 8,794 10,276 11,932 13,080 14,366 15,376 15,807 16,616 17,634
284 100 232 261 228 312 453 584 605 568 651
4,215 4,014 3,829 4,736 5,197 5,072 4,815 7,096 6,027 6,694 7,986
Total Liabilities 10,122 10,654 12,896 15,312 17,397 18,504 19,674 23,096 22,478 23,917 26,311
2,247 2,952 3,784 4,599 4,961 4,952 6,473 6,380 6,194 6,159 6,414
CWIP 855 719 653 581 355 573 391 495 517 454 175
Investments 4,106 3,118 4,501 6,066 7,669 6,114 8,359 10,582 10,528 10,891 11,218
2,914 3,864 3,958 4,066 4,411 6,865 4,451 5,639 5,240 6,413 8,505
Total Assets 10,122 10,654 12,896 15,312 17,397 18,504 19,674 23,096 22,478 23,917 26,311

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
2,963 2,186 3,722 4,007 4,017 1,032 5,518 4,110 2,104 2,614
-1,616 31 -2,300 -1,972 -1,858 1,298 -2,819 -2,289 -222 -421
-1,414 -2,131 -1,475 -2,036 -2,102 -2,252 -2,602 -1,852 -1,975 -2,147
Net Cash Flow -66 86 -53 -1 57 78 97 -31 -94 45

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
Debtor Days 13 18 16 20 16 29 19 27 27 29
Inventory Days 13 16 14 14 16 19 24 30 26 27
Days Payable 46 50 51 62 56 54 58 88 76 73
Cash Conversion Cycle -19 -16 -20 -29 -24 -5 -15 -32 -23 -17
Working Capital Days -33 -14 -11 -17 -14 8 -7 -17 -9 -4
ROCE % 50% 54% 48% 45% 39% 27% 24% 18% 23%

Shareholding Pattern

Numbers in percentages

1 Recently
Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
34.76% 34.76% 34.75% 34.75% 34.78% 34.78% 34.78% 34.78% 34.78% 34.76% 34.76% 34.76%
34.97% 32.28% 29.57% 29.22% 28.84% 27.79% 27.48% 27.01% 28.10% 26.80% 28.34% 28.93%
20.23% 21.97% 23.69% 24.24% 25.58% 26.89% 27.30% 27.86% 27.28% 29.14% 28.09% 27.76%
10.05% 11.00% 11.99% 11.79% 10.81% 10.55% 10.45% 10.36% 9.85% 9.30% 8.80% 8.55%
No. of Shareholders 2,87,5483,43,8983,98,5384,04,0563,68,7213,49,5223,27,7733,33,0543,13,1043,01,4982,80,5472,92,828

* The classifications might have changed from Sep'2022 onwards. The new XBRL format added more details from Sep'22 onwards.

Classifications such as banks and foreign portfolio investors were not available earlier. The sudden changes in FII or DII can be because of these changes.

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