Hero MotoCorp Ltd - Good show, Maintain BUY - Emkay

Reco: BUY
CMP: Rs 1755
Target Price: Rs 2200

- Q1 operating perf. beat est. by 5% on lower overheads
- Mgmt expects pick up in demand owing to good monsoons
- 10 new launches in H2 and intensive cost-cutting initiative to boost investor confidence – warrants further re-rating
- Lower FY14 EPS by 4% on higher tax rate assumption but broadly retain FY15 estimates
- Maintain BUY with a TP of Rs 2,200 – the stock is currently trading at 16.6x FY14E and 12x FY15E earnings

Source : Equity Bulls

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