Hero MotoCorp Reports Strong Q4 Results, Stock Rallies Over 3%
Hero MotoCorp share price rallies over 3% after Q4 results. Should you buy, sell or hold the stock?
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Hero MotoCorp's share price increased by over 3% following the announcement of its Q4 FY26 results, which included a net profit of ₹1,401 crore and a 28.8% rise in revenue. Despite the positive performance, analysts suggest caution, with Goldman Sachs maintaining a 'Sell' rating and a target price of ₹4,300.
- 01Hero MotoCorp reported a net profit of ₹1,401 crore for Q4 FY26, a 29.6% increase from the previous year.
- 02Revenue for the quarter rose to ₹12,797 crore, up 28.8% YoY.
- 03The company sold 17.14 lakh units of motorcycles and scooters, a 24% increase YoY.
- 04Goldman Sachs has set a target price of ₹4,300, indicating a potential downside of nearly 16%.
- 05Hero MotoCorp's stock has shown mixed performance, declining 12% in three months but rising 30% over the past year.
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Hero MotoCorp, the world's largest manufacturer of motorcycles and scooters, experienced a 3.26% increase in its share price, reaching ₹5,280.00 on the Bombay Stock Exchange (BSE) after reporting strong Q4 FY26 results. The company posted a net profit of ₹1,401 crore, reflecting a 29.6% growth compared to the same quarter last year. Revenue surged to ₹12,797 crore, representing a 28.8% increase YoY, while the total units sold reached 17.14 lakh, marking a 24% growth. The company's EBITDA also saw a significant rise of 31% to ₹1,856 crore, with an improved EBITDA margin of 14.5%.
Despite these positive results, analysts recommend caution. Goldman Sachs maintained a 'Sell' rating on Hero MotoCorp shares, setting a target price of ₹4,300, which suggests a 16% downside from the recent closing price. Technical analysis indicates that while the stock is trading within a falling channel, there are signs of potential upward momentum if it breaks above ₹5,318. However, sustained trading below recent support levels could delay any bullish trends. Overall, while the company shows strong performance, investors should weigh the risks before making decisions.
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Hero MotoCorp's strong performance may bolster investor confidence, potentially influencing market sentiment in the automotive sector.
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