The shares of the prominent two-wheeler manufacturers gained up to 3 percent after the company foray into the electric three-wheeler market through a strategic investment of Rs 525 crore in Euler Motors Private Limited.
Price movement
With a market capitalization of Rs 73,543.98 crore, the shares of Hero MotoCorp Ltd were trading at Rs 3,693.00 per share, increasing around 3 percent as compared to the previous closing price of Rs 3,596.90 apiece.
Reason for rise
The shares of Hero MotoCorp Ltd have seen positive movement after a foray into the electric three-wheeler market through a strategic investment of Rs 525 crore by acquiring a significant stake in Euler Motors.
Moreover, Hero MotoCorp’s investment strengthens its position in the rapidly growing electric three-wheeler market, where EVs are expected to reach 35 percent of total sales soon. Euler Motors, operating in 30 cities, specializes in designing, manufacturing, and servicing electric three-wheelers. The company recently expanded its portfolio by launching its first electric commercial four-wheeler.
Financial performance
Examine the company’s financial condition, revenue increased by 5 percent from Rs 9,788 crore in Q3FY24 to Rs 10,260 crore in Q3FY25, and during the same time frame, net profit stretched by 1.5 from Rs 1,091 crore to Rs 1,108 crore.
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Business Performance
Hero MotoCorp Ltd delivered strong Q3 FY25 results, gaining market share in 95 percent of its portfolio, notably in 125cc, EV, and GB segments. Profits rose 12 percent, with record-high revenue and profits for the nine months YTD. EBITDA per unit crossed ₹10,000, driven by premiumization, improved product mix, and strategic pricing.
New Product Launches
Hero MotoCorp launched multiple products, including the Xtream 250R, the fastest 250cc bike in its class, and the Xpulse 210 with a liquid-cooled engine. The VIDA V2 Series upgrades its EV lineup, while the Destini revamp and new Xoom 125 and Xoom 160 expand its scooter range.
Challenges and Outlook
Hero MotoCorp faces challenges in maintaining motorcycle market share amid rising scooter and EV demand. EV transition from V1 to V2 led to temporary dispatch shortfalls, but recovery is expected with new product integration. The company remains optimistic about growth, leveraging localization and PLI benefits to optimize costs.
Company Profile
Hero Moto Corp earlier also known as “Hero Honda” is one of India’s first motorcycle manufacturers. The company started in 1984 as a Technological collaboration with Honda, Japan. Before this collaboration, Hero was selling Cycles under the brand name, Hero Cycles.
Written by Abhishek Singh
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