Hero MotoCorp: Analysts Recommend Buy, Target Price of Rs 6000

Hero MotoCorp Reports Strong Q4FY26 and FY26 Performance

Hero MotoCorp (HMCL) has reported a strong performance in its Q4FY26 and FY26 results, driven by broad-based growth, improved margin, healthy demand traction, and disciplined execution across its core segments. The company's tailwinds from the marriage season and upcoming pay commission development are expected to support entry-level demand. Additionally, new launches in the 125cc segment and steady ASP growth of approximately 3% quarter-on-quarter in Q4FY26 have aided mix improvement.

The company's dealer inventory has corrected to approximately 5 weeks in Q4FY26, indicating a healthy retail traction. Management expects a gradual recovery in rural demand, which will further support volumes going forward. This optimistic outlook is likely to drive the company's growth in the coming quarters.

FY27/28E EPS Estimate and Target Price

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In response to the company's strong performance, we have marginally revised our FY27/28E EPS estimate. Our target price for Hero MotoCorp remains at INR 6,000. We value the company at 18x (maintained) P/E multiple, which corresponds to an implied PEG of 1.7x on FY28E EPS.