This Two-wheeler Manufacturer Gave 103% Returns In One Year

Shares of Hero MotoCorp, India’s leading two-wheeler manufacturing company, have been on a remarkable upward trajectory, providing investors with impressive returns of 103 per cent over the past year. Closing at Rs 4,698.15 on the National Stock Exchange (NSE) in the last trading session, the stock surged by 3.94 per cent, reinforcing its position as a lucrative investment option.

Despite the substantial gains already made, analysts believe there is still considerable potential for growth in Hero MotoCorp’s stock. Brokerage firm Sharekhan, in particular, has reiterated its ‘Buy’ rating on the stock, emphasising the company’s positive outlook. Hero MotoCorp’s management anticipates double-digit revenue growth in the two-wheeler industry for the fiscal year 2025, a trend from which the company is expected to benefit significantly.

Sharekhan’s endorsement of Hero MotoCorp is based on several factors, including a notable recovery in EBITDA margin, strong consumer response to the company’s products, a consistent focus on premiumisation, and expansion into electric vehicles (EVs). Although the brokerage has maintained the target price at Rs 6,057 per share, it remains optimistic about the stock’s performance.

Reflecting on the stock’s exceptional performance, it’s evident that Hero MotoCorp has delivered substantial returns to investors. With the stock price soaring from Rs 2,308.60 on March 27, 2023, to Rs 4,698.15 presently, investors have nearly doubled their money in just one year. For instance, an investment of Rs 1 lakh made a year ago would now be valued at Rs 2,03,506.

In recent months, Hero MotoCorp’s shares have demonstrated consistent upward momentum, registering a four-and-a-half per cent increase in the last month alone and a staggering 58 per cent surge over the past six months. In 2024 so far, the stock has yielded a commendable 14 per cent return for investors.

As per BSE data, Hero MotoCorp’s promoters hold a stake of 34.76 per cent, while the remaining 65.24 per cent is owned by the public. With a market capitalization exceeding Rs 93,600 crore on BSE, the stock’s 52-week high stands at Rs 4,979.95, reached on February 12, 2024, while its 52-week low is Rs 2,246.75, recorded on March 28, 2023.