Hero MotoCorp - Scooters And Premium, Finally Getting It Right: Centrum Broking
A Hero MotoCorp motorcycle is displayed at a dealership in New Delhi. (Photographer: Prashanth Vishwanathan/Bloomberg)  

Hero MotoCorp - Scooters And Premium, Finally Getting It Right: Centrum Broking

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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.

Click on the attachment to read the full report:

Centrum Broking Hero MotoCorp Company Update.pdf

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