Prefer HMCL over BJA : “Two-wheeler is the only segment in the Indian Automotive industry which is likely to report 8-10% volume growth in H1FY15 as against a flattish to declining sales for passenger cars and CVs, respectively. Given the strong product portfolio and the initial success of Splendor ‘iSmart’, we believe Hero Motocorp (HMCL) could surprise positively on the volume front. With scooter and export demand likely to be strong and positive feedback on new products, we reiterate our positive stance on Hero Motocorp. At the CMP, the stock trades at 15.6x FY15E EPS and 13.2x FY16E EPS, which is attractive, given 28.4% CAGR in earnings over FY14-FY16E period”, says Prabhudas Lilladher research report.
Hero Moto Corp. Business Associations 