Trade Nivesh : Shares of Hero MotoCorpNSE -3.43 % fell almost 4 per cent in Tuesday's session after it reported a 24.51 per cent year-on-year fall in profit at Rs 730.32 crore for the quarter ended March.
The company on Friday reported that its revenue declined 7.92 per cent in Q4 to Rs 7,884.96 crore over Rs 8,564.04 crore reported for the same quarter last year.
Brokerages trimmed target prices on the stock by as much as 8 per cent.
Hero’s single-digit earnings growth in FY19, therefore, is likely to keep the upside capped for the stock, even though it is trading at 14.7 times twelve-month earnings, a discount of 7 per cent to its long-term average.
CLSA cut the target price by 1 per cent to Rs 2,375 mkay Global cut target price by 4 per cent, IDBI Capital lowered it by 8 per cent and Equirus by 7.5 per cent.
Analysts expect margin headwinds for two-wheeler companies going forward as they believe original equipment manufacturers will find it difficult to pass on the full cost impact of new safety and emission norms due to weak demand and high competition.
The company on Friday reported that its revenue declined 7.92 per cent in Q4 to Rs 7,884.96 crore over Rs 8,564.04 crore reported for the same quarter last year.
Brokerages trimmed target prices on the stock by as much as 8 per cent.
Hero’s single-digit earnings growth in FY19, therefore, is likely to keep the upside capped for the stock, even though it is trading at 14.7 times twelve-month earnings, a discount of 7 per cent to its long-term average.
CLSA cut the target price by 1 per cent to Rs 2,375 mkay Global cut target price by 4 per cent, IDBI Capital lowered it by 8 per cent and Equirus by 7.5 per cent.
Analysts expect margin headwinds for two-wheeler companies going forward as they believe original equipment manufacturers will find it difficult to pass on the full cost impact of new safety and emission norms due to weak demand and high competition.
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