Hero MotoCorp - Scooters And Premium, Finally Getting It Right: Centrum Broking
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Centrum Broking Report
Centrum Broking expects Hero MotoCorp Ltd. to post strong volume growth in FY22 over a low base, and on the back of continued positive rural sentiments.
Strong rural demand is good for its motorcycle segment which is ~94% of is volumes.
The effect of new launches in the scooter and premium is visible from the market share improvement in FY21 and we expect these segments to start contributing in a material way from FY23 onwards.
This drives our expectation of FY21-23E CARG of 16% for Motorcycles, 24% for Scooters, and 16.5% overall.
We expect revenue to grow by 18.3% CAGR and PAT growth of 27% CAGR for FY21-23E.
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