Consumer Cyclical · Auto Manufacturers · NSE · India
₹5047.00-1.58%
Market cap ₹1.01TNext earnings 2026-10-28Updated Oct 24, 2026 · valuation updating
Our verdict
No fair value
We are missing the financial data our models need for this company. It will appear once the data arrives.
Not valued: there are no financial statements on file yet.
ACCE opinionHero MotoCorp Limited (HEROMOTOCO.NS)
Fair value
Not available
ACCE price target
₹5194
Rating
Not rated
Horizon
12 months
ACCE price target published on 22 Oct 2026, 16:00 CEST.
Price used: ₹5047 at the close on 23 Oct 2026, 12:00 CEST.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
61
out of 100
P/E
18.5x
forward 15.6x
1-year return
-9.7%
Dividend yield
3.61%
Hero MotoCorp Limited in four questions
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Overview
ACCE thesis
Hero MotoCorp makes the Splendor, HF Deluxe, Glamour and Xtreme motorcycles that dominate India's entry-level and commuter segment, along with the Vida electric scooter line and its Harley-Davidson-licensed Hero-built models. Its moat is distribution: a dealer network of several thousand outlets, low-cost manufacturing and brand recall that few rivals can match in rural India, where financing and resale value drive buying decisions. The near-term catalyst is the shift to electric two-wheelers and premium-tier launches, with Vida's rollout and the Harley partnership expanding the company's reach beyond commuter bikes. The stock is interesting now because the reported 34.9% revenue growth sits alongside a forward P/E of 15.8 against a trailing 18.8, implying earnings are expected to rise faster than the current multiple reflects. The 11.6% operating margin and 31.7% gross margin leave room to test whether the EV investment cycle dilutes profitability, which is the question a deeper look should answer first.
⚠ Investor warnings · 1 flagAI-assisted·How I use AI
moderate
Earnings falling despite revenue growth
Revenue grew 34.9% year on year while earnings fell 17.2%, so profit is not keeping pace with sales. Net margin of 10.7% is a figure to track against prior periods.
AI research notes
AI-assisted·How I use AIWritten Oct 22, 2026 · figures from 2026-10-22 · prices to Oct 23, 2026
Why it could do well
Revenue grew 34.9% year over year, well ahead of its 11.5% average annual pace over five years.
The company carries almost no debt, with debt to equity at 0.04.
Analysts' mean price target of INR 6212.22 sits 21.1% above the current share price.
Why it could disappoint
Net margin is 10.7%, which leaves little room for error if costs rise or prices come under pressure.
The stock trades at a trailing P/E of 18.8x, and the share price sits 2.8% below the ACCE price target of ₹5194.00, so the upside looks limited.
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