- Hero MotoCorp reported a notable 14% increase in net income for the second quarter, reaching 12.0 billion rupees, surpassing market estimates of 11.52 billion rupees.
- Revenue rose by 11% year-over-year to 104.6 billion rupees, slightly above the estimated 102.13 billion rupees.
- Total costs increased by 10% from the previous year, amounting to 91.46 billion rupees.
- Raw material costs accounted for 69.17 billion rupees, marking a 6.7% rise compared to the previous year.
- Other income saw a 14% growth, totaling 2.83 billion rupees this quarter.
- EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reached 15.16 billion rupees, showing a 14% year-over-year improvement and exceeding the forecast of 14.82 billion rupees.
- The company’s EBITDA margin increased to 14.5% from 14.1% a year earlier, close to the estimated margin of 14.6%.
- Analyst ratings for Hero MotoCorp include 27 buys, 7 holds, and 8 sells.
A look at Hero Motocorp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Hero MotoCorp Ltd, a renowned company in the motorcycle industry, appears to have a positive long-term outlook based on the Smartkarma Smart Scores. With a strong emphasis on dividends and resilience, scoring a solid 5 in both categories, the company shows a commitment to rewarding its shareholders and weathering market uncertainties. Its focus on value and moderate growth, scoring 3 in each, indicates a stable performance with room for development. However, the momentum score of 2 suggests that the company may need to work on boosting its market presence and investor interest to accelerate its growth trajectory.
Hero MotoCorp Ltd, a prominent player in motorcycle design, manufacturing, and distribution, stands out with its impressive dividend payout and resilient nature. Offering a wide range of motorcycles, parts, and accessories, the company demonstrates a commitment to shareholder value and steady growth. While scoring high in dividend yield and resilience, Hero MotoCorp could potentially enhance its market momentum to attract more investors and further solidify its position in the competitive industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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