The shares of a large-cap company, specializing in the manufacturing and sale of motorcycles and scooters, and recognized as the world’s largest two-wheeler manufacturer by unit volume, are set to turn ex-dividend tomorrow with an impressive 3250 percent dividend announcement.
With a market capitalization of Rs. 87,281.85 crores on Wednesday, the shares of Hero MotoCorp Ltd jumped upto 1.35 percent, making a high of Rs. 4399.60 per share compared to its previous closing price of Rs. 4340.95 per share.
Hero MotoCorp Ltd, engaged in the manufacturing and sale of motorcycles and scooters, and recognized as the world’s largest two-wheeler manufacturer by unit volume, is set to turn ex-dividend tomorrow.
The company is issuing a Final dividend of Rs. 65 per equity share, representing a 3,250 percent payout over the face value of Rs. 2 per share. The record date for the dividend is set as 24 July 2025, and the company has a dividend yield of 3.80 percent.
Financials & Others
The company’s revenue rose by 4.5 percent from Rs. 9,794.01 crore to Rs. 10,244 crore in Q4FY24-25. Meanwhile, the Net profit rose from Rs. 935.01 crore to Rs. 1,161.33 crore during the same period.
The company shows strong financial health with a low debt-to-equity ratio of 0.04 and solid profitability, reflected in an average ROE of 15.15% and ROCE of 19.61% over the last three years.
It has maintained a healthy average net profit growth of 16.05% during the same period. Additionally, its P/E ratio of 20.63 is significantly lower than the industry average of 153.22, indicating potential undervaluation.
Hero MotoCorp Ltd., formerly known as Hero Honda Motors Ltd., is an Indian multinational motorcycle and scooter manufacturer with its headquarters located in Delhi, India. It was established in 1984 as a joint venture between Hero Cycles and Honda of Japan. The company has risen to become a global leader, holding the position of the world’s largest manufacturer of motorcycles and scooters by unit volume since 2001.
It holds a dominant position in India’s two-wheeler market with around 30% market share, leading retail sales consistently. The company has a strong global presence, operating in 47 countries across Asia, Africa, South, and Central America.
The company maintains manufacturing facilities in India, Colombia, and Bangladesh. It also supports an extensive network of over 10,000 customer touchpoints worldwide, ensuring broad reach and service accessibility.
The management maintains its EBITDA margin guidance of 14–16%, despite ongoing investments in EV and related areas. Margin improvements are expected from a better product mix, price hikes, cost savings through the LEAP program, lower material costs, and EV scale. The company sees no risk from the increasing EV/export mix, viewing it as a planned investment phase.
Written by Sridhar J
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