Hero Motocorp (HMC; erstwhile Hero Honda Motors) is the largest manufacturer of motorcycles in the world. The company was earlier a joint venture promoted by Hero Cycles (P) Limited and Honda Motor Company with each partner holding 26% stake. HMC is solely engaged in manufacturing and sale of motorcycles and gearless scooters. Its initial technology agreement with Honda expired in 2004, which was extended till 2014. However, in December 2010, Hero Honda made an announcement with respect to the new licensing agreement, which eventually led the Hero Group to buy out Honda's 26% stake. Some of the other features of the agreement included fresh licensing agreement with Honda to provide new models, freedom to export to new markets and independence to set up own R&D and new product development capabilities and acquire technology.
hero motocorp - 1 Year Stock Price Chart
Price
Rs
1,657.8
No. of shares
m
199.69
Mkt Cap
Rs m
331,046
% ch
%
-1.6
Vol
'000
14.3
% ch week
%
-0.9
P/E
X
15.6
% ch 1-mth
%
8.5
P/CF
X
9.5
% ch 12-mth
%
-11.3
EPS (TTM)
Rs
106.1
52 week H/L
Rs
2,150.0/1,434.1
(As on May 22, 2013 3:24:00 PM)
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EQUITY SHARE DATA
High
Rs 786 1,098 2,078 2,094 2,250
Low
Rs 561 630 1,011 1,376 1,575
Sales per share (Unadj.)
Rs 517.4 616.9 789.1 971.4 1,180.8 Earnings per share (Unadj.)
Rs 48.5 64.2 111.8 96.5 119.1 Diluted earnings per share Rs 48.5 64.2 111.8 96.5 119.1 Cash flow per share (Unadj.)
Rs 56.5 73.2 121.4 116.7 174.0 Dividends per share (Unadj.)
Rs 19.00 20.00 110.00 105.00 45.00 Adj. dividends per share Rs 19.00 20.00 110.00 105.00 45.00 Dividend yield (eoy)
% 2.8 2.3 7.1 6.1 2.4 Book value per share (Unadj.)
Rs 149.5 190.3 173.5 148.0 214.8 Adj. book value per share Rs 149.5 190.3 173.5 148.0 214.8 Shares outstanding (eoy)
m 199.69 199.69 199.69 199.69 199.69
Bonus/Rights/Conversions
- - - - -
Price / Sales ratio
x 1.3 1.4 2.0 1.8 1.6
Avg P/E ratio
x 13.9 13.5 13.8 18.0 16.1 P/CF ratio (eoy)
x 11.9 11.8 12.7 14.9 11.0 Price / Book Value ratio
x 4.5 4.5 8.9 11.7 8.9 Dividend payout
% 39.2 31.2 98.4 108.8 37.8
Avg Mkt Cap
Rs m 134,491 172,532 308,421 346,462 381,907
No. of employees
`000 4.3 4.5 4.8 5.3 6.0
Total wages/salary
Rs m 3,835 4,487 5,603 6,190 7,355
Avg. sales/employee
Rs Th 23,910.7 27,296.9 33,168.2 36,899.2 39,298.3
Avg. wages/employee
Rs Th 887.5 994.2 1,179.3 1,177.5 1,225.8
Avg. net profit/employee
Rs Th 2,240.0 2,840.0 4,697.7 3,667.3 3,963.5
INCOME DATA
Net Sales
Rs m 103,318 123,191 157,582 193,979 235,790 Other income
Rs m 2,232 2,803 3,633 2,896 3,646
Total revenues
Rs m 105,550 125,994 161,215 196,875 239,436
Gross profit
Rs m 13,563 17,006 26,709 26,126 36,187 Depreciation
Rs m 1,603 1,807 1,915 4,024 10,973
Interest
Rs m 20 25 21 152 213
Profit before tax
Rs m 14,172 17,977 28,406 24,846 28,647
Minority Interest
Rs m 0 0 0 0 0
Prior Period Items
Rs m 0 0 0 0 0
Extraordinary Inc (Exp)
Rs m -69 -163 -88 -798 0
Tax
Rs m 4,424 4,997 5,999 4,769 4,866
Profit after tax
Rs m 9,679 12,817 22,319 19,279 23,781 Gross profit margin
% 13.1 13.8 16.9 13.5 15.3 Effective tax rate
% 31.2 27.8 21.1 19.2 17.0
Net profit margin
% 9.4 10.4 14.2 9.9 10.1
BALANCE SHEET DATA
Current assets
Rs m 9,368 10,135 28,826 14,508 20,743
Current liabilities
Rs m 18,247 20,528 48,314 60,167 43,414
Net working cap to sales
% -8.6 -8.4 -12.4 -23.5 -9.6 Current ratio
x 0.5 0.5 0.6 0.2 0.5 Inventory Turnover
Days 11 10 10 10 10 Debtors Turnover
Days 11 4 3 2 4 Net fixed assets
Rs m 15,487 16,943 17,069 41,302 38,244
Share capital
Rs m 399 399 399 399 399
"Free" reserves
Rs m 29,463 37,608 34,251 29,161 42,499
Net worth
Rs m 29,862 38,008 34,650 29,561 42,898
Long term debt
Rs m 785 660 327 0 0
Total assets
Rs m 50,684 60,765 85,152 107,263 98,889 Interest coverage
x 709.6 720.1 1,353.7 164.5 135.5
Debt to equity ratio
x 0.0 0.0 0.0 0.0 0.0 Sales to assets ratio
x 2.0 2.0 1.9 1.8 2.4
Return on assets
% 19.1 21.1 26.2 18.1 24.3 Return on equity
% 32.4 33.7 64.4 65.2 55.4 Return on capital
% 46.1 46.1 81.0 81.9 67.3 Exports to sales
% 2.4 2.0 2.1 2.3 2.5
Imports to sales
% 5.6 3.9 4.0 4.3 4.3
Exports (fob)
Rs m 2,428 2,470 3,373 4,442 5,986 Imports (cif)
Rs m 5,741 4,761 6,247 8,371 10,223 Fx inflow
Rs m 2,436 2,481 3,376 4,446 5,996 Fx outflow
Rs m 9,948 9,525 12,140 41,025 12,541 Net fx
Rs m -7,512 -7,044 -8,764 -36,579 -6,545
CASH FLOW
From Operations
Rs m 12,118 13,590 26,866 22,542 23,598 From Investments
Rs m -7,810 -8,612 -5,276 -13,223 928 From Financial Activity
Rs m -4,323 -4,999 -21,093 -9,552 -24,582 Net Cashflow
Rs m -16 -21 497 -234 -56
* Results ConsolidatedSource: Company Annual Reports, Regulatory Filings, Equitymaster
» Historical quarterly results for hero motocorp limited
ITEM Rs m % To R.M.C. % To SALES
Components
173,911.5
99.7
68.9
Steel sheets
577.2
0.3
0.2
Indian Promoters
:
52.2%
Foreign collaborators
:
0.0%
Indian inst/Mut Fund
:
5.9%
FIIs :
33.2%
ADR/GDR :
0.0%
Free float
:
8.6%
Shareholders
:
69,627
REGD OFF:
34, Community Centre, Basant Lok, Vasant Vihar, New Delhi - 110 057
E-MAIL:
ilam.kamboj@heromotocorp.com
WEB:
www.heromotocorp.com
TELEPHONE:
(011) 2614 2451
FAX:
(011) 2614 3198
SECTOR:
AUTOMOBILES/VEHICLES GROUP:
MUNJAL
TR AGENT:
Karvy Computershare, Plot 17-24, Vithalrao Nagar, Madhapur, Hyderabad-81
AUDITOR:
A. F. Ferguson & Co.
CHM: Brijmohan Lall Munjal COMP SEC: Ilam C. Kamboj YEAR OF INC: 1985 BSE CODE: 500182 FV (Rs): 2 YIELD (%): 2.7
