Hero MotoCorp Ltd - Operating performance in-line; ACCUMULATE - Emkay

Reco: ACCUMULATE
CMP: Rs 1796
Target Price: Rs 2000

- HMCL's Q2FY13 operating performance was in-line with expectations

- Domestic demand environment continues to remain tepid and could weigh on the stock in the near-term - see downside risks to mgmt. FY13 growth est of 4-5% growth

- Build in -3%/13% volume growth in FY13/14 - new launches Passion X-Pro, Maestro, Ignitor and exports to aid growth

- Stock currently trading at 14.5x/10.8x PER and 7.4x/6.2x EV-EBITDA on FY13/FY14 - ACCUMULATE with a TP of Rs 2,000

Source : Equity Bulls

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