BSE:500182

Stock Analysis Report

Executive Summary

Hero MotoCorp Limited develops, designs, manufactures, assembles, and sells vehicles in India.


Snowflake Analysis

Excellent balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Hero MotoCorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500182's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.7%

500182

-9.1%

IN Auto

-2.9%

IN Market


1 Year Return

-35.0%

500182

-37.5%

IN Auto

-29.3%

IN Market

Return vs Industry: 500182 exceeded the Indian Auto industry which returned -37.2% over the past year.

Return vs Market: 500182 underperformed the Indian Market which returned -29.2% over the past year.


Shareholder returns

500182IndustryMarket
7 Day-8.7%-9.1%-2.9%
30 Day-21.4%-29.9%-26.5%
90 Day-32.0%-39.4%-28.5%
1 Year-32.3%-35.0%-36.1%-37.5%-27.9%-29.3%
3 Year-43.4%-48.5%-44.5%-46.6%-15.4%-20.0%
5 Year-27.7%-37.5%-31.7%-35.2%-3.3%-8.3%

Price Volatility Vs. Market

How volatile is Hero MotoCorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hero MotoCorp undervalued compared to its fair value and its price relative to the market?

36.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 500182 (₹1660.15) is trading below our estimate of fair value (₹2610.71)

Significantly Below Fair Value: 500182 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 500182 is good value based on its PE Ratio (8.7x) compared to the Auto industry average (13.2x).

PE vs Market: 500182 is good value based on its PE Ratio (8.7x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 500182's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500182 is overvalued based on its PB Ratio (2.3x) compared to the IN Auto industry average (1.7x).


Next Steps

Future Growth

How is Hero MotoCorp forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.9%

Forecasted Automobiles industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hero MotoCorp has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Hero MotoCorp performed over the past 5 years?

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500182 has a large one-off gain of ₹9.9B impacting its December 31 2019 financial results.

Growing Profit Margin: 500182's current net profit margins (12.3%) are higher than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: 500182's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: 500182's earnings growth over the past year (8.3%) exceeds its 5-year average (6.8% per year).

Earnings vs Industry: 500182 earnings growth over the past year (8.3%) exceeded the Auto industry 0%.


Return on Equity

High ROE: 500182's Return on Equity (26.2%) is considered high.


Next Steps

Financial Health

How is Hero MotoCorp's financial position?


Financial Position Analysis

Short Term Liabilities: 500182's short term assets (₹106.4B) exceed its short term liabilities (₹51.2B).

Long Term Liabilities: 500182's short term assets (₹106.4B) exceed its long term liabilities (₹9.5B).


Debt to Equity History and Analysis

Debt Level: 500182's debt to equity ratio (1.6%) is considered satisfactory.

Reducing Debt: 500182's debt to equity ratio has increased from 1.2% to 1.6% over the past 5 years.

Debt Coverage: 500182's debt is well covered by operating cash flow (1010.5%).

Interest Coverage: 500182 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 500182 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500182's debt is covered by short term assets (assets are 44.9x debt).


Next Steps

Dividend

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

5.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500182's dividend (5.24%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: 500182's dividend (5.24%) is in the top 25% of dividend payers in the Indian market (4.18%)


Stability and Growth of Payments

Stable Dividend: 500182's dividend payments have been volatile in the past 10 years.

Growing Dividend: 500182's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.7%), 500182's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Pawan Munjal (65yo)

no data

Tenure

₹804,100,000

Compensation

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 MotoCor ...


CEO Compensation Analysis

Compensation vs Market: Pawan's total compensation ($USD10.67M) is above average for companies of similar size in the Indian market ($USD746.65K).

Compensation vs Earnings: Pawan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Pawan Munjal
Chairmanno data₹804.10m0.038% 125.9m
Niranjan Gupta
Chief Financial Officer2.92yrs₹45.30m0.0016% 5.3m
Surender Chhabra
Vice President of Corporate Financeno datano data0.0014% 4.5m
Vikram Kasbekar
CTO, Head of BR3.58yrs₹61.90m0.0020% 6.6m
Vijay Sethi
Chief Information Officer4.67yrsno data0.0015% 5.1m
Neerja Sharma
Company Secretary & Chief Compliance Officer3.58yrs₹17.90m0.00017% 563.7k
Umang Deep Khurana
Head of Investor Relationsno datano datano data
Ravi Sabharwal
General Counselno datano datano data
Gurinder Sandhu
Head of Marketingno datano datano data
Naveen Chauhan
Head of National Salesno datano datano data

3.3yrs

Average Tenure

58.5yo

Average Age

Experienced Management: 500182's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pawan Munjal
Chairmanno data₹804.10m0.038% 125.9m
Vikram Kasbekar
CTO, Head of BR3.58yrs₹61.90m0.0020% 6.6m
Paul Edgerley
Non-Executive & Independent Director3.83yrs₹1.40mno data
Shobana Kamineni
Non-Executive & Independent Director5yrs₹1.70mno data
Pradeep Dinodia
Non-Executive Director19yrs₹9.50m0.000080% 265.3k
Suman Munjal
Non-Executive Director9.67yrs₹1.80m0.041% 136.3m
Tina Trikha
Additional & Independent Director0.42yrno datano data
Meleveetil Damodaran
Non-Executive & Independent Director11.75yrs₹7.90mno data
Jagmohan Raju
Non-Executive & Independent Director1.33yrs₹800.00kno data

4.8yrs

Average Tenure

65yo

Average Age

Experienced Board: 500182's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hero MotoCorp Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hero MotoCorp Limited
  • Ticker: 500182
  • Exchange: BSE
  • Founded: 1984
  • Industry: Motorcycle Manufacturers
  • Sector: Automobiles
  • Market Cap: ₹331.597b
  • Shares outstanding: 199.74m
  • Website: https://www.heromotocorp.com/en-in/

Number of Employees


Location

  • Hero MotoCorp Limited
  • 34, Community Centre
  • Basant Lok
  • New Delhi
  • Delhi
  • 110057
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500182BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 1992
HEROMOTOCONSEI (National Stock Exchange of India)YesEquity SharesININRMar 1992

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 12:45
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.