Largecap Auto Stock Declares 1750% Dividend, Top Brokerage Puts "Buy" Call On Stock

The world's largest 2-wheeler manufacturer, HeromMoto Corp reported a good set of quarterly numbers today. The board of directors have recommended a final dividend subject to approval of members @ 1750% i.e. Rs. 35 per share (face value of Rs. 2 per equity share). The dividend, if declared at the ensuing AGM, will be paid by September 8, 2023.

Prabhudas Lilladher puts "buy" call on the stock for target price of Rs 3200

According to Prabhudas Lilladher, volumes at the company grew QoQ by 2.5%, and YoY by 6.9%. The brokerage also noted that revenue grew QoQ by 3.4% to Rs. 83bn, and YoY by 11.9%; exactly in line with its own estimates.

"EBITDA grew QoQ by 17.2% to Rs. 11bn, and YoY by 30.9%; largely driven by beat on raw materials cost (which was helped by inventorisation) and partially offset by higher other operating expenses during the quarter," Prabhudas Lilladher has said.

According to the brokerage, EBIT grew QoQ by 20% to Rs. 09bn, and YoY by 36.7%, while profits before tax grew QoQ by 21.9% to Rs. 11bn, and YoY by 42.9%. PAT grew QoQ by 20.8% to Rs. 09bn, and YoY by 37%, was helped by beat on EBITDA and higher other income

"Overall, revenue was in line and margins were helped by inventorisation, which could reverse in coming quarters," Prabhudas Lilladher has said in its report. The brokerage has a "buy" call on the stock with a price target of Rs 3200.

Niranjan Gupta Chief Executive Officer (CEO), Hero MotoCorp, said, "The company has been able to drive margin expansion and profitable growth this quarter through a judicious combination of pricing, savings, and mix. In line with our policy, we have declared overall dividend for the year at Rs 100/ share, which continues to be in top quartile in terms of payout ratio. In coming fiscal year , we have lined up slew of product launches in different segments with an aim to strengthen our premium portfolio as well as premiumization of existing models, which will help us deliver improvement in market share."

Disclaimer
The stock has been picked from the brokerage report of Prabhudas Lilladher. Greynium Information Technologies Pvt Ltd and the author are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision. The above article should not be construed as a buy recommendation from our end, as we have just provided information based on the brokerage report. We have not done any analysis and just presented facts from the company and from the brokerage firm.