Hero MotoCorp Shares Rise 2% Post Q4 Results Amid Goldman Sachs' Caution
Hero MotoCorp shares gain 2% after Q4 results. Why Goldman Sachs still forecasts 16% downside?
The Economic TimesImage: The Economic Times
Hero MotoCorp shares increased by 2% to ₹5,238 following a strong Q4 FY26 performance, with revenues up 29% year-on-year to ₹12,797 crore and profits rising 30% to ₹1,401 crore. Despite this, Goldman Sachs maintains a Sell rating, forecasting a 16% downside due to concerns over commodity inflation and market share outlook.
- 01Hero MotoCorp's Q4 FY26 revenue rose 29% to ₹12,797 crore.
- 02Profit after tax increased by 30% to ₹1,401 crore.
- 03Goldman Sachs projects a 16% downside with a target price of ₹4,300.
- 04The company sold 17.14 lakh motorcycles and scooters, a 24% increase year-on-year.
- 05VIDA, the electric mobility business, saw a 190% growth in annual retail performance.
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Hero MotoCorp shares gained 2%, reaching a high of ₹5,238 on the Bombay Stock Exchange (BSE) after reporting impressive Q4 FY26 results. The company achieved a 29% year-on-year increase in revenue, totaling ₹12,797 crore, and a 30% rise in profit after tax to ₹1,401 crore. EBITDA also saw a significant increase of 31.1%, reaching ₹1,856 crore. The company sold 17.14 lakh motorcycles and scooters during the quarter, reflecting a 24% growth compared to the previous year, driven by strong demand across various segments. Despite this positive performance, Goldman Sachs has issued a Sell rating on Hero MotoCorp, setting a target price of ₹4,300, indicating a 16% potential downside. The brokerage noted that while the Q4 results met expectations, factors such as commodity inflation and supply chain stability remain critical for future performance. Hero MotoCorp continues to lead the global market for motorcycles and scooters, having maintained its position for 25 consecutive years, and has expanded its product offerings, including new models in both entry-level and premium segments. The company's electric mobility division, VIDA, reported a 190% increase in annual retail performance, highlighting its growth trajectory in the evolving market.
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The strong performance of Hero MotoCorp may lead to increased investor confidence and potential growth in the two-wheeler market, benefiting consumers through enhanced product offerings and improved services.
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