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Hero MotoCorp

BSE:500182
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
500182
BSE
₹533B
Market Cap
  1. Home
  2. IN
  3. Automobiles
Company description

Hero MotoCorp Limited develops, designs, manufactures, assembles, and sells vehicles in India. The last earnings update was 18 days ago. More info.


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500182 Share Price and Events
7 Day Returns
1.8%
BSE:500182
-1.6%
IN Auto
-0.7%
IN Market
1 Year Returns
-17.9%
BSE:500182
-33%
IN Auto
-12.1%
IN Market
500182 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hero MotoCorp (500182) 1.8% 7.6% 1.7% -17.9% -20.6% 5.4%
IN Auto -1.6% -6.2% -13.5% -33% -22.9% 0.3%
IN Market -0.7% -5.7% -4.3% -12.1% 13% 25.2%
1 Year Return vs Industry and Market
  • 500182 outperformed the Auto industry which returned -33% over the past year.
  • 500182 underperformed the Market in India which returned -12.1% over the past year.
Price Volatility
500182
Industry
5yr Volatility vs Market

Value

 Is Hero MotoCorp undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hero MotoCorp to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hero MotoCorp.

BSE:500182 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 33 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.4%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BSE:500182
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Auto Unlevered Beta Simply Wall St/ S&P Global 0.6
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.602 (1 + (1- 35%) (0.58%))
0.735
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.8 * 8.6%)
14.43%

Discounted Cash Flow Calculation for BSE:500182 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Hero MotoCorp is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

BSE:500182 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 14.43%)
2020 33,180.97 Analyst x21 28,996.74
2021 29,657.44 Analyst x21 22,649.25
2022 32,430.19 Analyst x6 21,643.62
2023 36,743.00 Analyst x1 21,429.65
2024 39,072.00 Analyst x1 19,914.35
2025 41,633.88 Est @ 6.56% 18,544.18
2026 44,487.79 Est @ 6.85% 17,316.56
2027 47,630.12 Est @ 7.06% 16,201.77
2028 51,063.94 Est @ 7.21% 15,179.42
2029 54,797.50 Est @ 7.31% 14,235.14
Present value of next 10 years cash flows ₹196,110.68
BSE:500182 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ₹54,797.50 × (1 + 7.55%) ÷ (14.43% – 7.55%)
₹856,609.18
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹856,609.18 ÷ (1 + 14.43%)10
₹222,527.53
BSE:500182 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹196,110.68 + ₹222,527.53
₹418,638.21
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹418,638.21 / 199.73
₹2096.05
BSE:500182 Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹2,096.05
Current discount Discount to share price of ₹2,667.85
= -1 x (₹2,667.85 - ₹2,096.05) / ₹2,096.05
-27.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Hero MotoCorp is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hero MotoCorp's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hero MotoCorp's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BSE:500182 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in INR ₹189.01
BSE:500182 Share Price ** BSE (2019-08-16) in INR ₹2667.85
India Auto Industry PE Ratio Median Figure of 10 Publicly-Listed Auto Companies 15.18x
India Market PE Ratio Median Figure of 2,785 Publicly-Listed Companies 13.56x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hero MotoCorp.

BSE:500182 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:500182 Share Price ÷ EPS (both in INR)

= 2667.85 ÷ 189.01

14.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hero MotoCorp is good value based on earnings compared to the IN Auto industry average.
  • Hero MotoCorp is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Hero MotoCorp's expected growth come at a high price?
Raw Data
BSE:500182 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.11x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 33 Analysts
3%per year
India Auto Industry PEG Ratio Median Figure of 7 Publicly-Listed Auto Companies 1.96x
India Market PEG Ratio Median Figure of 544 Publicly-Listed Companies 1.09x

*Line of best fit is calculated by linear regression .

BSE:500182 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.11x ÷ 3%

4.71x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hero MotoCorp is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Hero MotoCorp's assets?
Raw Data
BSE:500182 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in INR ₹656.92
BSE:500182 Share Price * BSE (2019-08-16) in INR ₹2667.85
India Auto Industry PB Ratio Median Figure of 12 Publicly-Listed Auto Companies 2.46x
India Market PB Ratio Median Figure of 3,663 Publicly-Listed Companies 0.87x
BSE:500182 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:500182 Share Price ÷ Book Value per Share (both in INR)

= 2667.85 ÷ 656.92

4.06x

* Primary Listing of Hero MotoCorp.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hero MotoCorp is overvalued based on assets compared to the IN Auto industry average.
X
Value checks
We assess Hero MotoCorp's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto industry average (and greater than 0)? (1 check)
  5. Hero MotoCorp has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Hero MotoCorp expected to perform in the next 1 to 3 years based on estimates from 33 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hero MotoCorp expected to grow at an attractive rate?
  • Hero MotoCorp's earnings growth is positive but not above the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Hero MotoCorp's earnings growth is positive but not above the India market average.
  • Hero MotoCorp's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
BSE:500182 Future Growth Rates Data Sources
Data Point Source Value (per year)
BSE:500182 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 33 Analysts 3%
BSE:500182 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 33 Analysts 8%
India Auto Industry Earnings Growth Rate Market Cap Weighted Average 15%
India Auto Industry Revenue Growth Rate Market Cap Weighted Average 8.4%
India Market Earnings Growth Rate Market Cap Weighted Average 17.9%
India Market Revenue Growth Rate Market Cap Weighted Average 11.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BSE:500182 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 33 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BSE:500182 Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-03-31
2023-03-31
2022-03-31 392,546 47,595 37,472 11
2021-03-31 369,949 41,074 35,202 33
2020-03-31 336,866 48,207 34,407 31
BSE:500182 Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-06-30 332,435 37,759
2019-03-31 339,708 10,323 34,441
2018-03-31 324,584 40,172 37,204
2017-03-31 286,104 40,072 35,843

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hero MotoCorp's earnings are expected to grow by 3% yearly, however this is not considered high growth (20% yearly).
  • Hero MotoCorp's revenue is expected to grow by 8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BSE:500182 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 33 Analyst Estimates (S&P Global) See Below

All data from Hero MotoCorp Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:500182 Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-03-31
2023-03-31
2022-03-31 185.75 254.90 143.38 9.00
2021-03-31 175.61 216.10 139.04 30.00
2020-03-31 168.89 198.90 144.10 25.00
BSE:500182 Past Financials Data
Date (Data in INR Millions) EPS *
2019-06-30 189.01
2019-03-31 172.45
2018-03-31 186.30
2017-03-31 179.49

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Hero MotoCorp is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Hero MotoCorp's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hero MotoCorp has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Hero MotoCorp performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hero MotoCorp's growth in the last year to its industry (Auto).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hero MotoCorp's year on year earnings growth rate has been positive over the past 5 years.
  • Hero MotoCorp's 1-year earnings growth is less than its 5-year average (3.4% vs 7.8%)
  • Hero MotoCorp's earnings growth has not exceeded the IN Auto industry average in the past year (3.4% vs 4%).
Earnings and Revenue History
Hero MotoCorp's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hero MotoCorp Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:500182 Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 332,435.00 37,758.70 27,602.70
2019-03-31 339,708.20 34,440.90 27,016.70
2018-03-31 324,583.70 37,204.00 25,174.60
2017-03-31 286,104.30 35,842.70 22,867.80
2016-03-31 284,571.20 31,419.80 21,387.60
2015-03-31 275,380.30 23,647.00 19,061.80
2014-03-31 252,754.70 21,026.60 22,355.50
2013-12-31 248,793.00 21,288.80 21,083.20
2013-09-30 241,901.40 20,921.10 20,627.00
2013-06-30 236,513.90 20,512.80 20,258.70
2013-03-31 237,391.50 21,181.60 20,089.90
2012-12-31 236,088.50 21,475.20 18,012.00
2012-09-30 234,571.90 22,726.60 18,022.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Hero MotoCorp has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Hero MotoCorp used its assets more efficiently than the IN Auto industry average last year based on Return on Assets.
  • Hero MotoCorp's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Hero MotoCorp's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hero MotoCorp has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Hero MotoCorp's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hero MotoCorp's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hero MotoCorp is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hero MotoCorp's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Hero MotoCorp's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 38x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hero MotoCorp Company Filings, last reported 1 month ago.

BSE:500182 Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 132,365.20 3,115.00 33,820.00
2019-03-31 132,365.20 2,216.00 33,820.00
2018-03-31 120,646.70 1,312.80 57,217.30
2017-03-31 103,828.90 1,651.70 46,181.20
2016-03-31 88,887.40 2,322.10 36,655.70
2015-03-31 65,585.40 1,000.00 5,217.80
2014-03-31 56,234.90 0.00 10,346.10
2013-12-31 60,393.60 0.00 36,231.10
2013-09-30 60,393.60 0.00 36,231.10
2013-06-30 50,062.40 0.00 11,328.50
2013-03-31 50,062.40 0.00 11,328.50
2012-12-31 53,458.70 0.00 28,638.10
2012-09-30 53,458.70 0.00 28,638.10
  • Hero MotoCorp's level of debt (1.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.4% vs 1.7% today).
  • Debt is well covered by operating cash flow (465.8%, greater than 20% of total debt).
  • Hero MotoCorp earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Hero MotoCorp's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hero MotoCorp has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Hero MotoCorp's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.26%
Current annual income from Hero MotoCorp dividends. Estimated to be 3.55% next year.
If you bought ₹2,000 of Hero MotoCorp shares you are expected to receive ₹65 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hero MotoCorp's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.63%).
  • Hero MotoCorp's dividend is above the markets top 25% of dividend payers in India (2.52%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BSE:500182 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 33 Analyst Estimates (S&P Global) See Below
India Auto Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 1.7%
India Market Average Dividend Yield Market Cap Weighted Average of 1441 Stocks 1.5%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.6%
India Top 25% Dividend Yield 75th Percentile 2.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BSE:500182 Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2024-03-31
2023-03-31
2022-03-31 102.00 12.00
2021-03-31 94.91 27.00
2020-03-31 91.11 26.00
BSE:500182 Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-04-26 87.000 3.385
2019-01-31 95.000 3.536
2018-05-02 95.000 2.994
2018-02-06 85.000 2.352
2017-05-10 85.000 2.279
2017-03-07 87.000 2.648
2016-05-05 72.000 2.252
2016-03-10 80.000 2.743
2015-09-18 60.000 2.328
2014-08-05 60.000 2.227
2013-04-26 60.000 2.963
2012-08-16 45.000 2.545
2011-08-29 105.000 5.259
2011-02-02 140.000 8.218
2010-07-29 30.000 1.639
2010-04-15 30.000 1.547
2009-04-21 20.000 1.278

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Hero MotoCorp's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess Hero MotoCorp's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hero MotoCorp afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hero MotoCorp has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Hero MotoCorp's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Pawan Munjal
COMPENSATION ₹804,100,000
AGE 65
CEO Bio

Dr. Pawan Kant Munjal, B.E. (Mech.), serves as the Managing Director and Chief Executive Officer of Hero MotoCorp Limited. Dr. Munjal is responsible for day to day management of the affairs of Hero MotoCorp Limited. He serves as Works Executive of Majestic Auto Ltd. He serves as a Member of Executive Board and Member of Governing Board of Indian School of Business. He has been Chairman of Hero MotoCorp Limited since June 1, 2015 and served as its Vice Chairman from August 5, 2014 to June 1, 2015. He has been an Executive Director of Hero MotoCorp Limited since April 1, 1986. Dr. Munjal serves as a Non-Executive Director of Hero Honda Finlease Ltd. He serves as Director at Hero Future Energies Limited. He serves as a Member of the Board of Governors at Indian Institute Of Management, Lucknow. He is a Member of the Development Council for Automobile & Allied Industry (DCAAI) and Board of Trade (BOT) constituted by the Government of India. Dr. Munjal is on the Governing Council of All India Managing Association (AIMA).

CEO Compensation
  • Pawan's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Pawan's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Hero MotoCorp management team in years:

2.3
Average Tenure
58.5
Average Age
  • The tenure for the Hero MotoCorp management team is about average.
Management Team

Pawan Munjal

TITLE
Chairman
COMPENSATION
₹804M
AGE
65

Niranjan Gupta

TITLE
Chief Financial Officer
COMPENSATION
₹45M
AGE
48
TENURE
2.3 yrs

Surender Chhabra

TITLE
Vice President of Corporate Finance
AGE
63

Vikram Kasbekar

TITLE
CTO, Head of BR
COMPENSATION
₹62M
AGE
65
TENURE
0.6 yrs

Vijay Sethi

TITLE
Chief Information Officer
TENURE
4.1 yrs

Neerja Sharma

TITLE
Company Secretary
COMPENSATION
₹18M
TENURE
3 yrs

Umang Khurana

TITLE
Head of Investor Relations

Ravi Sabharwal

TITLE
General Counsel
AGE
54

Sanjay Bhan

TITLE
Head of Sales & After Sales
TENURE
1 yrs

Gurinder Sandhu

TITLE
Head of Marketing
AGE
52
Board of Directors Tenure

Average tenure and age of the Hero MotoCorp board of directors in years:

4.3
Average Tenure
65
Average Age
  • The tenure for the Hero MotoCorp board of directors is about average.
Board of Directors

Vikram Kasbekar

TITLE
CTO, Head of BR
COMPENSATION
₹62M
AGE
65
TENURE
3 yrs

Pradeep Dinodia

TITLE
Non-Executive Director
COMPENSATION
₹10M
AGE
66
TENURE
18.4 yrs

Pawan Munjal

TITLE
Chairman
COMPENSATION
₹804M
AGE
65
TENURE
4.2 yrs

Meleveetil Damodaran

TITLE
Non-Executive & Independent Director
COMPENSATION
₹8M
AGE
72
TENURE
11.2 yrs

Jagmohan Raju

TITLE
Non-Executive & Independent Director
COMPENSATION
₹800K
AGE
65
TENURE
0.8 yrs

Suman Munjal

TITLE
Non-Executive Director
COMPENSATION
₹2M
AGE
66
TENURE
9.1 yrs

Paul Edgerley

TITLE
Non-Executive & Independent Director
COMPENSATION
₹1M
AGE
63
TENURE
3.3 yrs

Shobana Kamineni

TITLE
Non-Executive & Independent Director
COMPENSATION
₹2M
AGE
59
TENURE
4.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess Hero MotoCorp's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hero MotoCorp has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Best BSE Bear Market Stocks

Below are a few options I am looking at: Hero MotoCorp, Bharat Dynamics and Tech Mahindra. … Because it’s a large-cap stock priced at ₹736.77B and a PE ratio of 19.8x, there are active participants in the market for the stock and there could still be room for value in the price, which reduces risk of firm price declines and allows you to sell without a large loss due to unattractive spreads. … With Tech Mahindra’s market value of ₹693.14B and a PE ratio of 16.44x, there are active participants in the market for the stock and there could still be room for value in the price, enabling the stock to better withstand selling pressure during market downturns.

Simply Wall St -

Is Hero MotoCorp Limited (BOM:500182) Worth ₹03634.4 Based On Intrinsic Value?

Does the share price for Hero MotoCorp Limited (BOM:500182) reflect it's really worth? … by projecting its future cash flows and then discounting them to today's value. … discounted cash flows (DCF).

Simply Wall St -

Company Info

Description

Hero MotoCorp Limited develops, designs, manufactures, assembles, and sells vehicles in India. It offers motorcycles and scooters. The company also provides engines, as well as related parts and accessories. It also exports its products to countries in Asia, Africa, and the South and Central America. The company was formerly known as Hero Honda Motors Ltd. and changed its name to Hero MotoCorp Limited in July 2011. Hero MotoCorp Limited was incorporated in 1984 and is headquartered in New Delhi, India.

Details
Name: Hero MotoCorp Limited
500182
Exchange: BSE
Founded: 1984
₹532,841,367,479
199,726,884
Website: http://www.heromotocorp.com/en-in/
Address: Hero MotoCorp Limited
34, Community Centre,
Basant Lok,
New Delhi,
Delhi, 110057,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 500182 Equity Shares Mumbai Stock Exchange IN INR 02. Mar 1992
NSEI HEROMOTOCO Equity Shares National Stock Exchange of India IN INR 02. Mar 1992
Number of employees
Current staff
Staff numbers
0
Hero MotoCorp employees.
Industry
Motorcycle Manufacturers
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/17 12:37
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/16
Last earnings filing: 2019/07/30
Last earnings reported: 2019/06/30
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.