Hero Motocorp Limited is the single largest two-wheeler motorcycle establishment in the world. It is a joint venture between the Honda Motor Company of Japan and the Hero Group. There are more than 20 million two wheelers on the roads that have been produced by this company.
Market Capitalization of Hero Motocorp Limited
The market capitalization of Hero Motocorp Limited as of early March, 2018, is close to Rs.7,2,599.93.
Company's Wealth and Recent PerformanceQ1 FY 2018-19
- For the quarter ended on June 30, 2018, Hero Motocorp Limited reported its total revenue from operations to be at Rs.8,809.92 crore, as against Rs.8,621 crore reported for the same quarter of the previous year.
- Owing to this increase in the revenues, the company’s profit before tax also jumped from Rs.1,293 crore to Rs.1,342 crore y-o-y. However, the profit after tax (PAT) reduced marginally y-o-y owing to an increase in the total tax expenses for the period. The net profit for the June quarter stood at Rs.906 crore.
- The company’s earnings per share (EPS) for the quarter ended on June 30, 2018, was Rs.45.52, in comparison to Rs.45.77 reported for the same quarter of the previous year.
- For the year ended on March 31, 2018, Hero Motocorp Limited reported its consolidated total income to be at Rs.33,624.1 crore, as against Rs.31,506 crore for the previous financial year.
- The net profit for the fiscal year 2017-18 was reported to be at R.3,722.1 crore. With respect to the previous year, this marked an increase of a little over Rs.150 crore.
- The company’s basic earnings per share increased from Rs.179.49 to Rs.186.30, y-o-y.
- Considering the consolidated non-current liabilities of Hero Motocorp Limited, the figure as of March 31, 2018, stood at Rs.850.7 crore, as against Rs.752.4 crore for the previous year.
- In the last quarter, Hero Motocorp Limited's net profit was equal to the predictions made by financial analysts in terms of sales and volume growth.
- Net profit of the company increased by 4.3% y-o-y to rs.805.40 crore in the quarter that wrapped up in December, 2017.
- Revenues of the company rose by 15% to Rs.7,305.50 crore in comparison to Q3 in 2016.
- The predictions made by financial experts in terms of operational performance also came true. The earnings made by the company before depreciation, interest, tax, and amortisation increased by 7.2% on an annual basis to Rs.1,158 crore.
- However, the operating margins shrunk marginally by 10 basic points to 15.9% during the same period on various expenses including higher commodity costs.
- The company experienced high quarterly sales of 17.09 lakh units from 14.73 lakh units y-o-y. The volume growth was recorded to be at 16%.
Limited Stock Trends in 2017 and 2018
- In January 2018, the Open Price of Hero Motocorp Limited was Rs.3,790.15 at BSE while at NSE, it was at Rs.3,810.00. The Last Price was recorded to be at Rs.3,749.10 at NSE and Rs.3,768.80 at BSE. The Low Price on the first day of January 2018 was at Rs.3,755.30 at BSE and Rs.3,740.00 at NSE. On the last day of January, 2018, the Open Price was at Rs.3,703.00 at NSE and at BSE, it was at Rs.3,686.05. The Last Price stood at Rs.3,691.60 at BSE and Rs.3,691.45 at NSE. The High price on the last day of the month stood at Rs.3,747.90 at NSE and Rs.3,745.50 at BSE.
- On the first day of February 2018, the Open Price of the share were recorded at Rs.3,720.00 at BSE and Rs.3,695.15 at NSE. The Last Price on the first day of the month was Rs.3,732.95 at NSE and Rs.3,734.40 at BSE. The High Price on this day stood at Rs.3,743.95 at BSE and Rs.3,744.00 at NSE. On the last day of the month, the Open Price of a share of this company was at Rs.3,525.00 at NSE and Rs.3,553.00 at BSE. The Last Price on this was recorded at Rs.3,600.55 at BSE and Rs.3,596.70 at NSE. The High Price on the last day of the month stood at Rs.3,613.00 at NSE and Rs.3,615.90 at BSE.
- On March 1, 2018, the opening stock price of Hero Motocorp Limited was Rs.3,575 on the NSE. The price dipped marginally over the course of the month after rising for a short while. In the month of April, the share price rose sharply to cross the Rs.3,700 mark.
- Through the months of May and June, the stock price varied at levels from Rs.3,500 - Rs.3,700. The shares didn’t make any noticeable gains in this period. In July, the company announced a final dividend of 2,000%. This announcement, however, was followed by a sharp plunge.
- Over the course of July, the shares lost more than 15%. They eventually reached their 52-week low at Rs.3,033.75 on the NSE. In August, the prices rose marginally by a little over 5% to reach their previous levels at Rs.3,200. Things stayed this way for most of August and September. As of mid-September, the shares were seen trading hands at levels above Rs.3,150.
Limited Stock Trends in 2016 and 2017
- On January 1, 2016, the Open Price of a share of Hero Motorcorp Limited stood at Rs.2,695.00 at BSE and Rs.2,689.00 at NSE. The Last Price on that day was Rs.2,687.85 at BSE and Rs.2,686.05 at NSE. The High Price on this day was recorded to be at Rs.2,695.00 at NSE and Rs.2,696.05 at BSE. By the end of the month, the Open Price had dropped to Rs.2,442.15 at BSE and Rs.2,449.00 at NSE. The Last Price was recorded to be at Rs.2,565.65 at NSE and Rs.2,563.80 at BSE.
- On April 1, 2016, the Open Price stood at Rs.2,931.10 at NSE and Rs.2,939.00 at BSE. The Last Price on this day was Rs.2,951.05 at BSE and Rs.2,951.05 at NSE. The High Price on this day revolved around Rs.2,900 at both NSE and BSE. By the end of April, 2016, the Open Price dropped slightly to Rs.2,852.00 at NSE and Rs.2,890.10 at BSE. The Last Price towards the end of the month stood at Rs.2,901.30 at BSE and Rs.2,897.40 at NSE. The High Price stayed at around Rs.2,900 at both, BSE and NSE.
- In the month of July, 2016, the Open Price of a share had risen to Rs.3,185.50 at BSE and Rs.3,188.70 at NSE. The Last Price recorded on the first day of the month of July was at Rs.3,186.05 at NSE and Rs.3,176.65 at BSE. 3,185.50 at BSE and Rs.3,188.70 at NSE. The Last Price recorded on the first day of the month of July was at Rs.3,186.05 at NSE and Rs.3,176.65 at BSE. By the end of the month, the Open price was at Rs.3,190.00 at BSE and Rs.3,175.00 at NSE. The High Price revolved around Rs.3,240 at both, NSE and BSE. The Low Price stood at around Rs.3,176.55 at BSE and Rs.3,203.15 at NSE.
- On September 1, 2016, the Open Price of a share stood at Rs.3,551.00 at BSE and Rs.3560.00 at NSE. The Last Price recorded on this day was Rs.3,547.60 at NSE while at BSE, it stood at Rs.3546.90. The High Price in the beginning of the month was around Rs.3,500 at both, NSE and BSE. On the last day of the month, the Open Price was at Rs.3,462.00 at BSE and Rs.3,413.70 at NSE. The Last Price recorded on this day was Rs.3,413.70 at NSE and Rs.3,414.35 at BSE. The High Price was around Rs.3,400 at NSE and BSE. However, the Low Price was at Rs.3,300 at both, BSE and NSE.
- On December, 2016, the Open Price of a share of the company stood at Rs.3,161.00 at NSE and Rs.3,159.50 at BSE. The Last Price was at Rs.3,178.35 at BSE and Rs.3,190.45 at NSE. The High Price floated around Rs.3,200 at both, BSE and NSE. On this day, the Low Price stood at around Rs.3,140 at both, NSE and BSE. Towards the end of this quarter, the Open Price stood at Rs.3,045.00 at BSE and Rs.3,040.00 at NSE. The Last Price was recorded to be at Rs.3,043.65 at NSE and Rs.3,044.75 at BSE. The High Price was at around Rs.3,000 towards the end of the quarter at both, BSE and NSE. The Low Price was also recorded to be at Rs.3,000 at both, NSE and BSE.
- On January 2, 2017, the Open Price was at Rs.3,045.00 at BSE and Rs.3,042.00 at NSE. The Last Price was recorded to be at Rs.3,030.55 at NSE and Rs.3,028.70 at BSE. The High Price during this time stood at Rs.3,068.10 at BSE, while at NSE, it was at Rs.3,068.95. On the last day of January, 2017, the Open Price was at Rs.3,210.00 at BSE and Rs.3,190.00 at NSE. The Last Price was at Rs.3,172.35 at NSE and Rs.3,179.25 at BSE. The High Price around this time of the quarter was at Rs.3,220.00 at BSE and Rs.3,218.85 at NSE. However, the Low Price was recorded to be at Rs.3,1250.50 at NSE and Rs.3,179.25 at BSE.
- The month of April, 2017, began with the Open Price standing at Rs.3,250.00 at BSE and Rs.3,222.80 at NSE. The Last Price was at Rs.3,202.15 at NSE and Rs.3,204.70 at BSE. The High Price around this time of the month was recorded to be at Rs.3,263.95 at BSE and Rs.3,265.05 at NSE. By the end of the month, the Open price of the share had gone up to Rs.3,315.65 at BSE and Rs.3,317.60 at NSE. The Last Price was witnessed to be at Rs.3,352.95 at NSE and Rs.3,351.00 at BSE. The High Price revolved around Rs.3,382.00 at BSE and Rs.3,388.70 at NSE.
- On September 1, 2017, the Open Price of a share rose to Rs.4,006.00 at NSE and Rs.4.001.95 at BSE. The Last Price of a share was at Rs.4,047.30 at BSE and Rs.4,048.95 at NSE. 4.001.95 at BSE. The Last Price of a share was at Rs.4,047.30 at BSE and Rs.4,048.95 at NSE. By the end of the month, the Open Price stood at Rs.3,734.00 at NSE and Rs.3,750.00 at BSE. The Last Price was recorded to be at Rs.3,781.20 at BSE and Rs.3,774.55 at NSE. The High Price around this time was at Rs.3,800 at both, NSE and BSE.
- On December 1, 2017, the Open Price of a share stood at Rs.3,642.00 at NSE and Rs.3,642.00 at BSE. The Last Price on this day was recorded to be at Rs.3,642.00 at NSE and Rs.3,606.95 at BSE. The High Price in the beginning of the month was at Rs.3,680.00 at BSE and Rs.3,680.00 at NSE. Towards the end of the quarter, the Open Price of a share had risen to Rs.3,717.00 at BSE and Rs.3,730.00 at NSE. The Last Price was recorded to be at Rs.3,785.15 at NSE and Rs.3,786.30 at BSE. During this time, the High Price was at Rs.3,807.30 at BSE and Rs.3,809.85 at NSE. However, during this period, the Low Price revolved around Rs.3,720.05 at NSE and Rs.3,717.00 at BSE.
Should You Invest in Hero Motocorp Limited?
Hero Motocorp Limited enjoys the reputation of being the largest two-wheeler manufacturer in the world. In the last quarter, the company's net profit was equivalent to the predictions made by the financial experts in the industry. The net profit of the company also increased by 4.3%. The share prices have witnessed a significant increase in the last two years. The prices are expected to rise even more steeply in the upcoming quarters. Hence, it will be a good idea to invest in the stocks of Hero Motocorp Limited.
Based in India and formerly known as Hero Honda Motors Limited, Hero Motocorp Limited is the largest manufacturer of two-wheelers in the world. In the year 2001, this business entity achieved the prestigious position of being the largest two-wheeler producer in India. It also became the World's No.1 two-wheeler company in the category of unit volume sales in a calendar year. This company uses world-class technology in producing fuel-efficient two-wheelers that do not pollute the environment.
History of the Company
In the year 1984, Honda Motor Company of Japan and the Hero Group, an Indian company, launched a joint venture-Hero Honda Motors Limited. In the mid-80s, Hero Honda earned the recognition of being the first establishment in India that produced motorcycles that didn't cause pollution. This new set of motorcycles set a high benchmark for low emission and fuel thrift. The company also came up with the "Fill It-Shut it-Forget It" campaign that arrested the fancy of bike riders in India. It is because of the promise of an increased mileage made through this particular campaign that Hero Honda sold millions of bikes. Hero Honda was the first company in India to launch four-stroke bikes and set a benchmark for quality, fuel efficiency, and pollution control.
In the year 2010, Honda took the decision to come out of the joint venture. Hero Group bought the shares from Honda by the end of August 2011. Hero Motocorp decided to merge the investment wing of its parent company, Hero Investment Private Limited with the manufacturer of motorcycles in the year 2012. This decision was made after 18 months of splitting from Hero Honda.
Mr. Pawan Munjal, Chairman, Managing Director, and CEO
His responsibilities include strategic planning and mapping the growth of the entire company. He pursued BTech in Mechanical Engineering and has played a significant role in adding technological and managerial perfection to the company's operations. He has been heading quite a few Committees in CII. He is also an integral part of Indian School of Business. In the past, he has been the Chairman of the Asian PGA Tour Board of Directors and the President of Professional Golfers Association of India (PGAI). Under his able leadership, Hero Motocorp Limited unveiled the Hero Indian Sports Academy (HISA) as a joint venture with Laureus Foundation.
Ms.Shobana Kamineni, Non-Executive and Independent Director
She has been given the position of an Additional Director in the year 2015. Mr. Kamineni is the Executive Vice Chairperson for the Apollo Hospital Enterprise Limited. She is also a member of the founding family of the group. She has received several prestigious awards and recognitions including the Honorary Doctorate Degree of Science by the prestigious Bryant University, USA. She has earned a reputation for her entrepreneurship and leadership skills.
Hero Motocorp Listing in NSE, BSE, and Indices
Hero Motocorp Limited's stocks are available for trading on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The codes for the same are mentioned below:
Sector: Auto- 2 and 3 wheelers
Hero Motocorp Limited
34, Community Centre
Stocks vs. Mutual Funds: here's what we recommend
Stock market investments require a lot of research and knowledge. They do not generally offer any tax benefits and are regarded as high-risk investments. Hence,it is crucial to have a diversified portfolio. At Bankbazaar, we encourage our readers to invest on mutual funds . It doesn't require a lot of knowledge and equity linked mutual fund schemes offer tax benefits. Additionally, since mutual funds comprise stocks from multiple companies, they help in building a diversified portfolio.
DISCLAIMER: The contents of this post/blog does not constitute financial or other professional advice nor does it imply in any manner a principal-agent relationship, and is not a professional advice on a specific financial matter.