Broker’s call: Hero MotoCorp (Buy)

Posted on by

Target: $3,475

CMP: INR 3,028.55

MotoCorp Champion (HMCL) launched the first product co-developed with Harley-Davidson (HD) – the ‘X440’ – at CIT Jaipur. This marks HMCL’s entry into the >400cc category where it previously had no presence.

The X440 retains the retro look of Harley Davidson bikes and comes with three different variants: Denim, Vivid and S. It will be produced at HMCL’s Neemrana factory and will be retailed through Harley Davidson’s nationwide network of dealers.

The HD X440 starting price of ₹ 2.29 lakh is very aggressive and seems to be a reliable product of the Harley brand. While we wait for real world feedback, the producer ticks all the right boxes on paper to make it work. This platform will also feature a different product under the Hero brand later in the year.

The demand for two-wheelers in the domestic market is expected to continue to rebound on a lower base, led by a healthy recovery in the urban market and a gradual recovery in the rural market. HMCL is a purist in the domestic motorcycle industry and its core strength lies in the 100cc motorcycle segment.

We reiterate our Buy rating with TP ₹3,475 (based on 16x June 2025 + ₹23/share for its stake in the NBFC business + $116/share for its stake in Ather Energy).