Categories
STUDY PURPOSE

Nifty stock in 2 Wheelers Company Trading at Nearer to 52 Weeks Low For Short Term

I think no Need to Guess the name Every one Knows the Company Till Now . But Company Trading Near 52 weeks Low. when ever there is some Bad news Need To Take as Good Opportunity to Enter in such Companies at lesser prices .

Hero Moto Corp earlier also known as “Hero Honda” is one of India’s first motorcycle manufacturers.
The company started in 1984 as a Technological collaboration with Honda, Japan. Before this collaboration, Hero was selling Cycles under the brand name, Hero Cycles.
In 2011, Honda group sold its 26% stake in the company to the Munjals (promoters) and ended the JV. Post the termination of JV, the name of the company was changed to Hero Motocorp.

It is the world’s largest manufacturer of 2 Wheelers, in terms of unit volumes sold by a single company in a calendar year, for 19 years in a row .
In FY 20, it sold 64 lakh two-wheeler units. Sales grew at a CAGR of 39% over the past decade.
The overall market share of the company in the two-wheeler segment stands at 35.7% as of FY20 .
The company has some strong brands under its names like Splendor, Passion, Glamour in the bike segment and like Pleasure, Maestro in the scooter segment and others .

Distribution Network
They have 199 dealers and 25,500 retailers .

Segment-wise performance
Entry Segment (100 -125 cc): In FY 20, the Co. gained market share by 12.5%, to 68.9%. This has grown from 51% in FY 16.

Deluxe Segment (125-150 cc): In FY20, the market share in Deluxe 100cc category has declined by 3.8%, to 74.8%. In the Deluxe 125cc category, market share has declined by 11.3%, to 49.8% .

Premium Segment(150 cc and above): It is focusing on the Premium segment with the launch of XPulse200T, Xtreme 200S in FY20, and Xtreme 160R in FY21. .
They have been losing market share in this segment for the last few years. The share declined 21% and is at 1.6% in FY 20, compared to 4.8% in FY 16 .

Scooter Segment: In FY20, the market share went down by 17%, to 7.2%.
One of its product, Destini 125 becomes no 1 brand under 125cc (first to get i3S technology in scooter).
To regain market share on 125cc segment, it has launched and Maestro Edge 125 (India’s first Fuel Injected Scooter) and it has also launched Pleasure+ 110 in FY20 .

Collaboration with Harley Davidson
It has tied up with Harley-Davidson under which it will develop and sell a range of premium motorcycles, accessories, and general merchandise under the Harley-Davidson brand name in India. 

Electric Vehicle
The Company has been focusing on expanding its business to EV’s for which it has tied up with Ather (in which the company owns 34.58% as of July 2020) and with Hero Hatch (an internal start-up).
Ather (the first Indian electric vehicle company) currently has 2 product offering- Ather 450 and Ather 450X and has also established EV charging infrastructure in Bengaluru and Chennai .

Financing of vehicles through Hero Fincorp
50% of vehicles get financed.
It also has its own financing division, Hero Fincorp and its share in total financing is 40% .

International Markets
In 2012, the company had a presence in 4 countries only, which has expanded to 40+ countries in FY 20 and has 9000+ Customer touch points (in FY18 it had 6500) across the globe .
It plans to sell one million units overseas annually in the next 3-4 years and expects overseas sales to contribute 10% to its revenue from 3% at present in coming years. 

Manufacturing
It has 8 manufacturing units, 6 in India and 1 each in Columbia and Bangladesh with a combined capacity of 9 million units in FY20( which was 8.1 million units in FY16). Average Capacity utilization stood between 72.5% and 88% (peak) in FY20.

R&D
The company’s investments in R&D over the past five years have been twice that of other players in the industry and currently has 94 patents under its name. 
It has 2 R&D facilities, 1 each in Jaipur(Rajasthan), and Munich(Germany) and in FY20 it has spent 2.4% of Total Revenue, which in FY18, it was 1.4% .

Company Name : HERO MOTOCORP LTD .

Cmp : 2789 (03.08.2021)

52 WEEKS HIGH/LOW : 3600/2622 (03.08.2021)

Target : 3150-3400++.

Time Frame : 2 Months – 6 months

Based on Fundamental & Technical Analysis

STUDY PURPOSES ONLY .

Disclaimer: I am Not a SEBI REGISTERED ANALYST. This Website & Its Owner, Creator & Contributor is Neither a Research Analyst nor an Investment Advisor and Expressing Option Only as an Investor in Indian Equities. All trading strategies are used at your own risk. He/ She are Not Responsible for any Loss a Rising out of any Information, Post or Opinion Appearing on this Website. Investors are advised to do Own Due Diligence or Consult Financial Consultant before acting on Such Information. Author of this Website not providing any Paid Service and not Sending Bulk mails/SMS to Anyone. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Investment/Trading in securities Market is subject to market risk.

Leave a Reply