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Motilal Oswal: Hero MotoCorp -Increased Volume Visibility, With Levers To Drive Upside  

Motilal Oswal: Hero MotoCorp -Increased Volume Visibility, With Levers To Drive Upside

A worker inspects motorcycles ready for shipping in the dispatch bay of the Hero MotorCorp Ltd. manufacturing facility in Gurgaon, India (Photographer Prashanth Vishwanathan/Bloomberg)
A worker inspects motorcycles ready for shipping in the dispatch bay of the Hero MotorCorp Ltd. manufacturing facility in Gurgaon, India (Photographer Prashanth Vishwanathan/Bloomberg)

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

Motilal Oswal Report

Hero MotoCorp Ltd. is in a sweet spot as strong rural-led recovery plays to its strength in the Economy–Executive category in the Motorcycles segment.

With an apt product portfolio for the rural market, the highest brand recall, and a strong distribution network, it is best placed to benefit from low penetration and ongoing momentum in the rural economy.

Hero MotoCorp’s competitive positioning has improved in both the 100cc and 125cc categories post BS-IV.

This is attributable to the narrowing of the price differential in the Economy segment (vis-a-vis Bajaj Auto Ltd.’s CT100) and product upgrades in Executive 125cc.

This would enable further recovery in market share in FY21 – signs of recovery are visible year-to-date.

Click on the attachment to read the full report:

Motilal Oswal Hero MotoCorp Company Update.pdf

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