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Hero MotoCorp Ltd logo

Hero MotoCorp Ltd

NSE: HEROMOTOCO BSE: 500182

5733

(0.89)%

Thu, 12 Feb 2026, 02:46 pm

Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (2x coverage).
  • Hero MotoCorp's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Hero MotoCorp's dividend is above the markets top 25% of dividend payers in India (3.08%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

health

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Pros

  • Hero MotoCorp is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hero MotoCorp is profitable, therefore cash runway is not a concern.
  • Hero MotoCorp is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (2628.9%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 41.2x debt.
  • Hero MotoCorp's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (1.5% vs 1.4% today).
  • Interest payments on debt are well covered by earnings (EBIT is 68.9x coverage).
  • Hero MotoCorp's level of debt (1.4%) compared to net worth is satisfactory (less than 40%).
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Cons

  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Hero MotoCorp board of directors is about average.
  • Pawan's compensation has been consistent with company performance over the past year, both up more than 20%.
  • More shares have been bought than sold by Hero MotoCorp individual insiders in the past 3 months.
  • The tenure for the Hero MotoCorp management team is about average.
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Cons

  • Pawan's remuneration is higher than average for companies of similar size in India.

misc

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Pros

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    Cons

    • Hero MotoCorp is not covered by any analysts.
    • Hero MotoCorp has significant price volatility in the past 3 months.

    past

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    Pros

    • Hero MotoCorp's year on year earnings growth rate has been positive over the past 5 years.
    • Hero MotoCorp used its assets more efficiently than the IN Auto industry average last year based on Return on Assets.
    • Hero MotoCorp has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
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    Cons

    • Hero MotoCorp's 1-year earnings growth is less than its 5-year average (5.5% vs 6.2%)
    • Hero MotoCorp's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • Hero MotoCorp's earnings growth has not exceeded the IN Auto industry average in the past year (5.5% vs 5.5%).

    value

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    Pros

    • Hero MotoCorp's share price is below the future cash flow value, and at a moderate discount (> 20%).
    • Hero MotoCorp's share price is below the future cash flow value, and at a substantial discount (> 40%).
    • Hero MotoCorp is good value based on earnings compared to the IN Auto industry average.
    • 500182 outperformed the Auto industry which returned -17.2% over the past year.
    • 500182 outperformed the Market in India which returned -14.5% over the past year.
    • BSE:500182 is up 8.9% along with the India market (8%) over the past month.
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    Cons

    • Hero MotoCorp is overvalued based on assets compared to the IN Auto industry average.
    • Hero MotoCorp is overvalued based on earnings compared to the India market.
    • BSE:500182 is up 8.9% underperforming the Auto industry which returned 10.7% over the past month.

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