MARKET EYE-BoFA downgrades Hero MotoCorp; cuts target to 1,650 rupees

Tue Dec 4, 2012 10:08am IST

Related Topics

Stocks

   

* Bank of America Merrill Lynch downgrades Hero MotoCorp
 to "underperform" from "buy" and cuts its target price
to 1,650 rupees from 1,980 rupees.
* The bank expects the company's domestic sales to remain muted
and in 'single digits.' This is primarily due to heavy
dependence on 100cc bikes where better options are available
with competitors, and likely structural shift to 150cc plus
premium bikes where the "company's franchise is weak".
* "We cut our export assumptions by 40 percent/year to factor in
the six-month delay in its overseas foray," BofA said in a note.
* It expects Hero MotoCorp's margin expansion to be muted, cuts
EBITDA margin assumptions by 70bp/year to 11.4/13.1 percent to
factor peer pressures, and rupee weakness that will hurt
imports.
* At 0436 GMT, shares were down 0.72 percent at 1,808.05 rupees.

 (manoj.dharra@thomsonreuters.com)
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Fuelling Change

REUTERS SHOWCASE

NSEL Fraud

NSEL Fraud

Govt orders Financial Tech to absorb NSEL, liabilities  Full Article 

Quarterly Result

Quarterly Result

HDFC Bank net profit up 20 percent, lags estimates.  Full Article 

JLR China

JLR China

JLR sees 20 percent growth in China sales this year - exec  Full Article 

China Economy

China Economy

China's growth slowest since global crisis, annual target at risk  Full Article 

Coal Reforms

Coal Reforms

Factbox - India pushes ahead with coal reforms  Full Article 

Apple Result

Apple Result

Apple's iPhone sales beat Street but iPad volumes slide  Full Article 

Airport Accident

Airport Accident

Total CEO de Margerie killed in Moscow business jet accident  Full Article 

Nadella's Paycheck

Nadella's Paycheck

New Microsoft CEO Nadella's pay tops $80 mln with big stock awards.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage