Shares of Hero MotoCorp can rise up to 28.5% from current levels, as per brokerage firm JPMorgan's recent note on Friday, September 18, which sees scope for re-rating based on a couple of conditions. The brokerage has an "overweight" rating on the Hero MotoCorp stock and has a target price of ₹6,845 per share on it.
JPMorgan said Hero MotoCorp has been losing 120 basis points of market share per year in recent years due to adverse segment shifts and share losses within segments. According to the brokerage, given Hero MotoCorp's attractive valuation, 13 times estimated price-to-earnings ratio for FY28, adjusted for associates, it sees scope for re-rating if the company can: Hold its market share through the upcoming festive period on an annual basis.
Close the growth gap compared to its peers over the medium term, supported by stronger execution in ICE scooters, EVs and exports. JPMorgan's views come after Hero MotoCorp's management meet. Here are the takeaways, as mentioned by the brokerage: Hero MotoCorp has reorganized into four independent business units -- India commuter, India premium, EVs and Exports -- to drive tangible measured outcomes in each segment.
Management views FY26 as an inflection to offset adverse category mix through market share gains in scooters, EVs and commuter. Wholesale and retail trends may diverge near-term as festivals are delayed by two to three weeks. Exports remain a key growth vector with partnership-led 'local-for-local' strategy and ambitions to scale towards over 1 million units by FY30.
Electrification is a multi-pronged strategy with VIDA and Ather both improving share simultaneously. Overall margins should gradually improve as raw material inflation plateaus and pricing flows through. A total of 43 analysts have coverage on the Hero MotoCorp, Of these, 29 have a "buy" rating, nine say "hold" and five have a "sell" rating.
Shares of Hero MotoCorp are trading 0.5% lower on Friday at ₹5,301. The stock is down 9.2% so far this year, having declined 8% in the last one month.