Hero MotoCorp 3QFY2016 Results: Angel Broking

Views of Mr. Bharat Gianani (Sr. Research Analyst - Automobile, Angel Broking) on Hero MotoCorp 3QFY2016 Results:

"Hero MotoCorp 3QFY2016 results were marginally ahead of estimates. Revenues expectedly grew 7% YoY to INR 7,295 cr. Volumes grew marginally 3% YoY led by the festive demand. Realisation per vehicle grew 4% YoY mainly due to price hikes. Hero's operating margins at 15.6% were ahead of our estimates of 14.5%. Lower commodity prices coupled with raw material cost control under the "Leap" program enabled the company to post slightly better operating performance. EBIDTA at INR 1,140 cr was higher than our expectations of INR 1,068 cr. Given the strong operating performance, the net profit at INR 796 cr was marginally better than our expectations of INR 757 cr. We currently have ACCUMULATE rating on the stock."

Shares of HERO MOTOCORP LTD. was last trading in BSE at Rs.2486.5 as compared to the previous close of Rs. 2498.45. The total number of shares traded during the day was 31464 in over 2462 trades.

The stock hit an intraday high of Rs. 2533.8 and intraday low of 2454. The net turnover during the day was Rs. 78639089.

Source : Equity Bulls

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