6 Feb 2023 , 10:19 AM
Result date: 7th February, 2023
Recommendation: Buy
Target price: Rs 3,185
Hero Motocorp witnessed decline in sales volumes, both sequentially as well as over the year-ago quarter. Price hikes could offset some of this pressure. Revenue could grow 1.1% over the year-ago quarter even though sequentially it could fall ~12%.
Analysts at IIFL Capital Services expect the company’s EBITDA margin to come in at 11.8%. Sequentially, this metric could witness minor uptick as benefits from lower commodity prices, price hikes offset pressures from negative operating leverage.
The company is likely to post flattish Profit After Tax (PAT) during the quarter.
Important management insights to watch out for:
December 2022 estimates |
YoY change |
QoQ change |
|
Volumes |
1,239,693 |
(4.1)% |
(13.2)% |
Revenue (Rs mn) |
79,716 |
1.1% |
(12.2)% |
EBITDA (Rs mn) |
9,395 |
(2.1)% |
(9.5)% |
EBITDA margin |
11.8% |
(39) bps |
34 bps |
Profit After Tax (Rs mn) |
6,875 |
0.2% |
(4.0)% |
Source: IIFL Research
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