Hero MotoCorp - Q4FY13 Result Preview - Angel Broking

Hero MotoCorp (HMCL) is slated to announce its 4QFY2013 results today. We expect the company's top-line to remain flat at Rs. 6,095cr owing to a ~3% yoy decline in total volumes as the demand environment for the two-wheeler industry deteriorated during the quarter. We expect operating margins (adjusted) to contract ~250bp yoy to 9.4% largely due to unfavorable currency movement and higher promotional exposes. Hence the bottom line (adjusted) is expected to decline ~18% yoy to Rs. 492cr. At Rs. 1,620, the stock is trading at 11.5x its FY2015E earnings.

Currently, we have an Accumulate rating on the stock with a target price of Rs. 1,824.

Source : Equity Bulls

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