Hero MotoCorp Ltd.

NSE: HEROMOTOCO
NIFTY200
Analyst consensus:Constructive· 35 analysts
₹4,897.20+16.8%1Y
Last updated 03:04:33 IST· Public market feed (~15 min delay during market hours)

Hero MotoCorp Ltd.: A 30-second snapshot

Hero MotoCorp (HEROMOTOCO) is Indias largest two-wheeler manufacturer, trading at ₹4,819.9 with a trailing PE of 16.8 and ROE of 28.0% — the highest quality score (69) among 6 tracked Auto sector peers. The stock has declined 16.0% over the past 3 months and is 23.1% off its 52-week high, sitting 10.6% below its 200-DMA with no identified technical support levels; RSI stands at 36.8.

P/E

16.8

Forward P/E

15.1

ROE

+28.0%

Debt / Equity

3.57

Profit Margin

+12.1%

Div. Yield

+3.8%

5Y ROE > 15%

4/5

5Y FCF > 0

4/5

Quality

73/100

Recent context

  • ·Q4 results expectations and dividend payout announcements featured in early May 2026 coverage, with dividend history highlighted as a focus area for the upcoming results cycle.
  • ·Hero MotoCorp appointed a new CTO in early May 2026, signaling an organizational emphasis on next-generation mobility; the EV platform expansion is cited as a strategic investment area.
  • ·News flow of 7 headlines over the tracked period skewed 4 positive, 3 neutral, and 0 negative; coverage included multi-company auto sector ratings roundups alongside company-specific dividend and leadership news.

Strengths

  • +Quality score of 69 ranks 1st of 6 Auto peers (BAJAJ-AUTO: 55, EICHERMOT: 66, MARUTI: 31), reflecting the highest composite quality in the tracked peer set.
  • +ROE of 28.03% is the second-highest among peers (BAJAJ-AUTO: 28.05%), with 4 of available years recording ROE above 15% and FCF positive — a consistency score of 77.
  • +Trailing PE of 16.8 and forward PE of 15.1 are the lowest among the 5 peers with available PE data (BAJAJ-AUTO: 27.0, EICHERMOT: 35.3, M&M: 19.5, MARUTI: 27.7), indicating a valuation discount relative to comparable names.
  • +Dividend yield of 3.77% and 5-year revenue growth of 30.2% with 5-year earnings growth of 25.7% indicate both capital returns to shareholders and a multi-year growth track.

Weaknesses

  • Price trades 10.6% below the 200-DMA (₹5,390.1) and 6.1% below the 50-DMA (₹5,130.5), with a 3-month decline of 16.0% and a 52-week drawdown of 23.1%; no technical support levels are identified in the data.
  • Debt-to-equity of 3.57 shows a rising trend, which in a capital-intensive EV transition environment represents an elevated leverage position relative to the companys historical profile.
  • RSI of 36.8 reflects sustained selling pressure over recent months, with three identified resistance levels (₹5,458.5, ₹5,484.5, ₹5,733.3) and no identified support below current price.
  • FCF-positive years and ROE-above-15% years are both recorded at 4, but the total number of years in the underlying dataset is not disclosed, making the consistency score of 77 difficult to independently verify.

Open questions

  • ?Does the rising debt-to-equity trend reflect a temporary EV platform capital cycle, or is leverage structurally increasing as a function of competitive pressure in the two-wheeler market?
  • ?Given that the PE of 16.8 is the lowest among tracked Auto peers while ROE ranks 2nd, what factors might explain the valuation discount relative to peers with lower returns on equity?
  • ?How has the dividend payout ratio trended over the 5 years in which FCF was positive, and does the 3.77% yield reflect a sustainable payout given the EV capex cycle?
  • ?The 52-week drawdown of 23.1% coincides with positive news flow and high peer-relative quality scores — what macro or sector-level factors could account for the divergence between fundamentals and recent price performance?

Peer comparison: Auto

Ranks 1 of 6 on quality
SymbolNameP/EROEQuality
HEROMOTOCOHero MotoCorp Ltd.You're viewing16.8+28.0%69
Industry avgacross 5 peers27.4+16.8%44
EICHERMOTEicher Motors Ltd.35.3+23.8%66
BAJAJ-AUTOBajaj Auto Ltd.27.0+28.1%55
M&MMahindra & Mahindra Ltd.19.5+18.8%52
MARUTIMaruti Suzuki India Ltd.27.7+14.4%31
TMPVTata Motors Passenger Vehicles Ltd.-1.1%16

Technical state

Current price

₹4,819.90

SMA 50

₹5,130.53

SMA 200

₹5,390.14

RSI (14)

36.8 (neutral)

From 52w high

-23.1%

1Y return

+15.0%

3M return

-16.0%

50-DMA

Below

200-DMA

Below

Algorithmic resistance levels

₹5,458.50
₹5,484.50
₹5,733.25

Risk flags

  • medium
    Price of ₹4,819.9 sits 6.1% below the 50-DMA (₹5,130.5) and 10.6% below the 200-DMA (₹5,390.1); the stock has declined 16.0% over the past 3 months and is 23.1% below its 52-week high with no identified support levels in the technical data.
  • medium
    Debt-to-equity of 3.57 carries a rising trend flag, elevated relative to the non-financial Auto sector context; BAJAJ-AUTO and MARUTI peer D/E figures are unavailable for direct comparison, limiting precision on relative leverage positioning.
  • low
    FCF-positive years recorded at 4 and ROE-above-15% years at 4, but the total years of underlying data are not specified in the persistence block, limiting confidence in the consistency score of 77.
  • low
    News sample covers 7 headlines; sentiment distribution (4 positive, 3 neutral, 0 negative) is directionally indicative but not statistically robust at this sample size.

Cross-section contradictions

  • Trailing 12-month price return of +14.98% is positive and the quality score ranks 1st of 6 sector peers, yet the stock has declined 16.0% over the past 3 months and trades 10.6% below its 200-DMA — suggesting gains are concentrated in earlier quarters while recent months show sustained technical deterioration.
  • News sentiment is net-positive (4 positive, 0 negative across 7 headlines) and ROE of 28.03% ranks 2nd of 6 peers, yet the stock currently shows RSI of 36.8 and sits below both key moving averages with no identified technical support levels.

For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.

Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST

AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days