Hero MotoCorp - Good show, Maintain BUY - Emkay

Reco: BUY
CMP: Rs 1649
Target Price: Rs 2200

- HMCL beat our Q4 EBITDA estimate by 7% on the back of a richer product mix and a favorable Yen

- Demand environment remains weak and FY14 volume growth over 5% would be a challenge

- However, we maintain that concerns over loss of market share for HMCL are overdone

- We broadly retain our estimates and maintain BUY with a TP of Rs 2,200 (Rs 2,250 earlier) - the stock is currently trading at 15x FY14E and 11.3x FY15E earnings.

Source : Equity Bulls

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