Hero MotoCorp Declares Generous Rs 100 Dividend – Big Reward For Investors?

Hero MotoCorp is the largest motorcycle and scooter manufacturer in the world. The firm recently strengthened its position in the luxury and scooter segments by launching four new products at Bharat Mobility 2025. In March 2025, new products will start to be delivered. After the automobile maker announced its Q3 financial results and a huge dividend of Rs 100 for FY25, Hero MotoCorp's shares closed the day on Friday by 1.12% higher on the BSE at Rs 4278.10 a share, with a market valuation of Rs 85,561.80 Cr.

Hero MotoCorp Dividend

The Board of Director considered and approved "Interim Dividend @5000%, i.e. Rs. 100/- per equity share, having nominal value of Rs. 2/- each for the financial year 2024-25. Accordingly, the Board has fixed February 12, 2025 as record date for determining entitlement of members for the purpose of payment of interim dividend. The payment of dividend / dispatch of dividend warrants will be completed by March 08, 2025," said Hero MotoCorp in a stock exchange filing.

Hero MotoCorp Q3 Financials

Hero MotoCorp announced on Thursday that its standalone net profit for the December quarter grew by 12% year on year to Rs 1,203 crore from Rs 1,073 crore during the same time the previous year. Revenue from operations for the third quarter of FY25 was Rs 10,211 crore, up 5% from Rs 9,723 crore in the same quarter of the prior fiscal year. With EBITDA growing 8.4% YoY to Rs 1,476.5 crore in Q3FY25, more than the Rs 1,362 crore in Q3FY24, the company's regulatory statement on exchanges showed that the margins had gone up by 50 basis points to 14.5 percent.

Hero MotoCorp Share Price Target

Buy HEROMOTOCO in Cash @ R 4274.65, Stop-loss @ 4000, Target @ 4600

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "HEROMOTOCO stock is currently trading around Rs 4274.65, showing a mild recovery after hitting a low of Rs 4000. The stock has been witnessing some consolidation, trying to stabilize before the next possible move. The stock is facing immediate resistance at Rs 4333 (near the 50-day Exponential Moving Average or EMA). A breakout above this level could push the stock towards the next major resistance at Rs 4600. On the downside, the stock has strong support around Rs 4200, which aligns with the 20-day EMA. A breach below this could see further correction towards R 4000."

"The stock is currently in between its 20-day and 50-day EMAs (Rs 4200 and Rs 4333, respectively), indicating a phase of indecision or consolidation. For current investors, holding the stock above Rs 4300 is advisable. Stop-loss orders can be placed near Rs 4000 to safeguard against downside risk. If the stock manages to close above Rs 4333, it could signal a further uptrend," the analyst stated.

"New investors may look for buying opportunities near Rs 4300, with a stop-loss at Rs 4000. A breakout above Rs 4333 would strengthen the case for short-term gains, potentially leading to a target of Rs 4600 in the coming sessions," Mandar Bhojane further recommended.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.