Hero MotoCorp Ltd.

SECTOR: Automobile Two & Three Wheelers

1994.35
₹ 175.6 (9.65%)
Today's High: 2010 Today's Low : 1860.1
52 Week High: 3021.15 52 Week Low : 1475.00
 FinStar
FinStar Indicates the overall health and quality of a stock based on Finology Research.
Ownership Stable
Ownership strength is slightly missing the benchmark.
ValuationFair
The stock’s market price justifies its intrinsic value.
EfficiencyExcellent
The company knows very well the utilization of its assets.
FinancialsWeak
Watch out! The company might not be able to sustain any adverse condition.

 Company Essentials

Market Cap

39835.02085708 Cr.

P/E

10.64

P/B

2.64

Face Value

₹2

Div. Yield

3.40%

Book Value (TTM)

755.533

Enterprise Value

39698.56085708 Cr.

CASH

136.46 Cr.

DEBT

0 Cr.

Promoter Holding

34.63%

EPS (TTM)

187.3877

Sales Growth

4.41 %

ROE

27.51 %

ROCE

40.76 %

Profit Growth

-8.45 %

No. of Shares

19.9739368 Cr.

Add your own Ratio
* Total debt includes long term borrowing, short term borrowing plus current maturities of long-term borrowing
* Ratios are based on latest Audited Financial Result.

 Price Chart 1w1m3m6m1Yr3Yr5Yr

* Prices are based on daily market changes.

 Valuation Chart 1w1m3m6m1Yr3Yr5Yr

* The chart is based on the standalone earnings of the company.

 Peer Comparison

View Full Peer Comparison
* The Peers list includes companies operating in the same industry and having comparable market cap.

 Sales Growth

1 Year4.41%
3 Year5.76%
5 Year5.89%

 Profit Growth

1 Year-8.44%
3 Year2.32%
5 Year9.92%

 ROE

1 Year27.51%
3 Year32.33%
5 Year35.48%

 ROCE

1 Year40.76%
3 Year46%
5 Year49.9%

 Debt Equity

0

 Price to Cash Flow

40.69

  Interest Cover Ratio

583.64

 CFO/PAT

0.943975354113692

 Share Holding Pattern

 Promoter Pledging %

Date Promoter % Pledge %
Dec 2019 34.63 0
Sep 2019 34.63 0
Jun 2019 34.63 0
Mar 2019 34.63 0
Dec 2018 34.63 0
* Figures given above are % of equity capital

 Strengths

  • Company has been maintaining healthy ROE of 32.3266666666667% over the past 3 years.
  • Company has been maintaining healthy ROCE of 45.9966666666667% over the past 3 years.
  • Company is virtually debt free.
  • Company has a healthy Interest coverage ratio of 583.64.
  • Company’s PEG ratio is -1.2565416441008.
  • The company has an efficient Cash Conversion Cycle of -9.39 days.
  • The company has a strong degree of Operating leverage, Average Operating leverage stands at 8.42059288361809.

 Limitations

  • The company has shown a poor profit growth of 2.31921435315043% for the Past 3 years.
  • The company has shown a poor revenue growth of 5.76472822569551% for the Past 3 years.

 Quarterly Result (All Figures are in Crores.)

Particulars Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019
Net Sales 7864.82 7884.96 8030.27 7570.7 6996.73
Other Income 187.64 164.22 218.83 207.83 182.21
Total Expenditure 6760.05 6815.64 6872.28 6469.58 5957.76
Operating Profit 1292.41 1233.54 1376.82 1308.95 1221.18
Interest 2.16 2.19 4.37 7.67 5.92
Depreciation 151.83 150.23 236.1 203.43 203.73
Exceptional Items 0 0 737.48 -60.11 0
Profit Before Tax 1138.42 1081.12 1873.83 1037.74 1011.53
Tax 369.32 350.8 616.49 162.94 131.12
Profit After Tax 769.1 730.32 1257.34 874.8 880.41

 Profit & Loss (All Figures are in Crores except Adjusted EPS in Rs.)

Particulars Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
Net Sales 27585 28443 28500 32230 33651
Other Income 584 422 522 526 691
Total Expenditure 24134 23988 23866 26950 28720
Operating Profit 4035 4877 5157 5806 5621
Interest 11 5 6 6 9
Depreciation 540 438 493 556 602
Exceptional Items -155 0 0 0 0
Profit Before Tax 3329 4435 4658 5244 5011
Tax 943 1275 1281 1547 1626
Net Profit 2386 3160 3377 3697 3385
Adjusted EPS 119 158 169 185 169

 Balance Sheet (All Figures are in Crores.)

Particulars Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
Equity and Liabilities
Share Capital 39.94 39.94 39.94 39.94 39.95
Total Reserves 6501.39 8794.47 10071.35 11728.94 12817.17
Borrowings 0 0 0 0 0
Other N/C liabilities 23.41 1251.01 1571.72 2073.55 2245.16
Current liabilities 3883.42 3448.32 4093.33 4343.32 4130.36
Total Liabilities 10448.16 13533.74 15776.34 18185.75 19232.64
Assets
Net Block 2912.69 3584.35 4395.59 4654.54 4618.58
Capital WIP 308.41 288.34 270.72 203.78 360.67
Investments 863.78 1111.91 1349 1934.08 2801.51
Loans & Advances 616.36 1828.56 1865.14 2183.65 2906.7
Other N/C Assets 464.79 569.36 442.71 361.52 429.54
Current Assets 5282.13 6151.22 7453.18 8848.18 8115.64
Total Assets 10448.16 13533.74 15776.34 18185.75 19232.64
* Other Non-current Liabilities include Net deferred Liabilities

 Cash Flows (All Figures are in Crores.)

Particulars Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
Profit Before Tax 3328.82 3160.19 3377.12 5244.16 5010.73
Adjustment 257.5 1414.94 1438.1 70.92 -61.37
Working Capital Changes -336.55 377.24 399.28 160.06 -1918.86
Tax Paid -999.77 -1103.23 -1186.48 -1494.28 -2051.45
Operating Cash Flow 2250 3849.14 4028.02 3980.86 979.05
Investing Cash Flow 12.08 -2206.19 -1943.94 -1915.22 1321.23
Financing Cash Flow -2230.52 -1686.69 -2095.63 -2046.66 -2293.98
Net Cash Flow 31.56 -43.74 -11.55 18.98 6.3

 Corporate Actions

 Ratings & Research Reports

 Company Presentations

 Hero MotoCorp Stock Price Analysis and Quick Research Report

Is Hero MotoCorp an attractive stock to invest in?

 

The Indian Auto Industry comes in the top 5 largest auto industries of the world. India is also a prominent auto exporter and has strong export growth expectations for the near future. The support from the government is providing the auto companies with a boost needed in their development. But will it sustain?
We can look into more details and dig a little deeper into the analysis of the stock of this sector. Let’s look at how Hero MotoCorp is performing and if it is the right time to buy the stock of Hero MotoCorp with detailed analysis.

  • The mainstream of revenue for Auto Sector is their sales, Hero MotoCorp has reported poor sales growth of 4.41 % and in the latest quarter sales was Rs 699.673 Cr. To judge whether the company’s inventory is being sold or not and the sales picture is true, inventory turnover ratio plays a major role, which is 35.4972863208418 times for Hero MotoCorp . It is managing its inventory efficiently .
     
  • The company reported Profit loss of -8.45 % over the year, where the latest year profit is Rs 3384.87 Cr compared to the previous year of Rs 36.9736 Cr. The new permits by governments and increasing demand will lead to an increase in profits in the coming year.
     
  • The operating profit of the company in the latest quarter is Rs 122.118 Cr. It helps in measuring the company’s operating performance which is used to make financing decisions.
     
  • Hero MotoCorp has a healthy ROE of 27.5084550097584 %. The ROE is an important financial parameter because Auto companies work with high equity investments. Also, they have to take huge debt to incur the research and manufacturing work so their Debt to Equity ratio should be evaluated. Hero MotoCorp has a low Debt to Equity ratio of 0.
     
  • Hero MotoCorp pays a dividend of 87 Rs per share. It tells us that a company dislikes to share profits with its shareholders. The dividend yield is low at 3.40475491634869 %.
     
  • The share of promoter in the company is low at 34.63 %, where the pledging is 0 %.
     
  • What the market is willing to pay for the company for its earnings can be determined by PE multiple. Current PE of Hero MotoCorp is 15.0791961729697 compared to the 5 year average PE of 18.802 .
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