Motilal Oswal is bullish on Hero MotoCorp and has recommended buy rating on the stock with a target of Rs 2340 in its July 20, 2012 research report.
"Hero MotoCorp's 1QFY13 operating performance is in-line, with adj EBITDA margin at 10.8% (v/s est 10.7%) and adj PAT of INR6.15b (v/s est INR6.13b). While lower than estimated volumes and realizations resulted in marginally below estimated EBITDA, impact of which was offset by higher other income."
"Volumes grew 7.4% YoY (+4.5% QoQ) to 1.64m units (v/s est 1.67m). Realization were flat QoQ (+ 2.6% YoY) to INR37,799 (v/s est INR38,284) impacted by adverse market mix, despite price increases in April & May and higher excise benefit at Haridwar plant (due to excise increase). As a result, net sales grew by 10% YoY (+4% QoQ) to INR62.1b (v/s est INR63.9b). Adj EBITDA margin at 10.8% were flat QoQ/YoY as benefit of operating leverage as offset by part impact of weaker INR on RM and royalty. EBITDA grew 14.5% YoY (+5% QoQ) to INR9b |
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