Hero MotoCorp - Challenges Galore: HDFC Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .HDFC Securities Institutional Equities.Our exhaustive channel checks across six of Hero MotoCorp Ltd.’s key states indicate that the 125cc segment is slowly emerging as a customer favourite, and as a result, contribution of 100cc has declined to 51% of motorcycles in FY23, from 58% in FY19. This shift in mix doesn’t bode well for Hero MotoCorp, given:100cc has always been its forte and contributes to 78% of its volumes Hero MotoCorp has lost significant market share in 125cc segment to 21%, from 55% in FY19. This shift in mix has also led to the company losing 510bps share in motorcycles since FY20 to 46.9%. Further, Honda Motorcycle and Scooter India’s entry in the 100cc segment with a well-established brand at a competitive price point undermarks its seriousness to gain a share in this segment, and may pose a serious threat to Hero MotoCorp. While Hero MotoCorp has a healthy launch pipeline largely focused on the 125cc and above segments, we do not expect it to recover meaningful share, given its multiple failed attempts in the past. .Click on the attachment to read the full report:.Jefferies' Top Stock Bets For June.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Hero MotoCorp - Challenges Galore: HDFC Securities

Shift in mix away from Hero MotoCorp’s forte doesn’t bode well for the company.

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