The Hero MotoCorp stock has been in focus after reports of mass senior exits just weeks after former CEO Niranjan Gupta stepped down. The Hero MotoCorp share price is up 2% intra-day but down 14% so far in 2025. While on the one hand there are concerns about declining market share, the strong launch pipeline for 2025 is something that investors would be watching out for.
Axis Securites has named Hero MotoCorp as one of their top picks with a Buy rating while BNP Paribas expects to see 15% upside in the Hero MotoCorp share price. Several other brokerages too added the stock to their list of Buys on hopes of an improvement in EBITDA margins.
Here is a quick look at the key factors to watch for Hero MotoCorp
Increased competition Intensity
The latest two-weeler sales data raise some concerns about rising competition for Hero MotoCorp. Apart from the low contribution of exports, Hero MotoCorp’s total two-weeler volumes declined 17% YoY and 12% MoM.
Hero MotoCorp FY26 sales Volume: Possibility of a cut in estimates?
This lower sales print has also led to Cut in sales volume estimates by several brokerage houses. Incred Equities cut its estimates by around 6% for FY25-FY27 on the back of weakness in the domestic two-wheeler industry.
Hero MotoCorp: New product launches
Most analysts highlighted that Hero MotoCorp’s product launches in premium scooters and EVs will be the key growth driver going forward. New models are scheduled for launch in Q4FY25 and FY26 as well. The company is expanding its offerings in the sub-Rs 1 Lakh electric two-wheeler segment through the Vida V2 platform. According to Axis Securities this helps in “reinforcing its position in the mass-market scooter segment. New premium motorcycles like the Xpulse 210 and Xtreme 250R have received strong market feedback, while upcoming models such as the Xoom 125, Xoom 160, and Destini 125 will further strengthen Hero MotoCorp’s scooter portfolio.”
Hero MotoCorp: Rural demand outlook
The push for comsumption in the Budget is seen as a positive for Hero MotoCorp stock. No Income Tax up to Rs 12 lakh and revised tax slabs (0-30%) are expected to increase disposable income and boost middle-class spending on discretionary items. Additionally, the Budget’s focus on Rural Development and Agriculture & Allied Activities through schemes like PM Dhan Dhaanya Krishi Yojna, facilitating short-term credit loans to 7.7 crore farmers through KCC, Mission for Cotton Productivity and National Mission on High-Yielding Seeds “are seen as initiatives indirectly supporting demand for entry-level two-wheeler, where Hero holds a dominant market position,” added Axis Securities.
Hero MotoCorp: EBITDA Margins
Hero MotoCorp achieved an EBITDA of over Rs 10,000 per vehicle. This was mainly on the back of richer product mix and strategic pricing. The ICE segment’s EBITDA margin stood at 16%, down 50 bps QoQ, primarily due to higher marketing and advertising expenses during the festive season. Axis Securities added that the company “aims to sustain overall EBITDA margins in the 14-16% range in the medium term, driven by a stronger product mix—EVs and higher cc motorcycles, continued product premiumisation, lower material costs and improved operational efficiencies.”