The shares of the Large-Cap company specializing in the manufacturing and sale of motorcycles and scooters, along with their associated spare parts and accessories, are in focus as the stock has declined upto 5 percent in the intraday trade. In this article, let’s explore the reason behind the rally.
With a market capitalization of Rs. 1,06,214.03 crores on Tuesday, the shares of Hero MotoCorp Ltd declined by 5.02 percent, reaching a low of Rs. 5258.70 per share compared to its previous closing price of Rs. 5536.85 per share.
Reason for the Fall
Hero MotoCorp Ltd, engaged in the manufacturing and sale of motorcycles and scooters, along with their associated spare parts and accessories, has declined upto 5 percent in intraday trade following the company’s October sales drop as it becomes the top loser on the Nifty auto index.
The country’s largest two-wheeler maker reported an 8% year-on-year decline in domestic sales, steeper than the Street’s estimate of a 3% drop. This was despite the overhaul in goods and services tax rates.
Hero MotoCorp October auto sales data
Hero MotoCorp has reported a 6.4 per cent year-on-year (Y-o-Y) fall in total sales to 6.35 lakh units in October 2025, compared to 6.79 lakh units in the same month last year.
The company’s domestic sales data, which was revealed after market hours yesterday, fell 8 percent to 6.04 lakh units from 6.57 lakh units, while exports jumped 42.8 percent to 30,979 units, up from 21,688 units a year ago.
The company reported strong growth in retail sales, reaching 9.95 lakh units in October. With a strong product lineup, robust domestic demand, and an expanding international presence, the company is well-positioned for continued growth throughout the remainder of FY26.
The recent GST benefits announced by Prime Minister Narendra Modi at the start of the festive season have given a significant boost to consumer sentiment and retail momentum across markets. With ongoing festive enthusiasm and increased consumer confidence, Hero MotoCorp anticipates a continued positive retail trend in the coming months.
Financials & Others
The company’s revenue declined by 4.7 percent from Rs. 10,211 crore in June 2024 to Rs. 9,728 crore in June 2025. Meanwhile, the Net profit rose from Rs. 1,032 crore to Rs. 1,706 crore during the same period.
The company boasts strong financial metrics, with a Return on Capital Employed (ROCE) of 30.3% and a Return on Equity (ROE) of 23.1%. It maintains a very low debt-to-equity ratio of 0.04 and a PEG ratio of 0.89, indicating solid growth potential. The stock’s P/E ratio of 21.2 is lower than the industry average of 39.8, suggesting it may be undervalued.
Additionally, the stock offers an attractive dividend yield of 3.11%, with the company maintaining a healthy dividend payout ratio of 73.7%. This reflects its commitment to returning value to shareholders while sustaining growth.
Hero MotoCorp is an Indian-based global company that is the world’s largest manufacturer of two-wheelers by volume. Founded in 1984, the company has grown into a global enterprise with a presence in 48 countries and a customer base of over 125 million riders.
They produce a range of motorcycles and scooters, with a focus on innovation, sustainability, and expanding its global reach, including new ventures in electric mobility through its brand VIDA.
It offers a wide range of two-wheeler products that include motorcycles & scooters and has set the industry standards across all market segments. Hero MotoCorp’s product range includes successful models that have redefined the Indian two-wheeler market: Karizma, Hunk, CBZ Xtreme, Super Splendor, Glamour Fi, Splendor+, Splendor NXG, Passion Plus, and more.
Written by Sridhar J
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