Hero MotoCorp Stands Tall Among Auto Peers with Bull Play
Representative image of India's auto component sector (Image credit GROKAI)
Hero MotoCorp Accelerates 28% Amid Festive Boom and Market Share Gains; StockEdge Flags Strong Bullish Momentum
By S JHA
Mumbai, October 10, 2025 — India’s largest two-wheeler maker Hero MotoCorp is once again in top gear, with the stock showing strong momentum and outperforming peers this festive season. According to StockEdge’s latest analysis shared on its Telegram channel, the scrip continues to display bullish strength across multiple timeframes — a sign of sustained investor optimism.
Momentum Check: Data-Backed Bullishness
Hero MotoCorp’s momentum scores tell the story:
- 1-Month: 68/100
- 3-Months: 80/100
- 6-Months: 70/100
The consistency reflects “solid upward drive even after minor corrections,” StockEdge said. The stock currently trades well above its EMA50 and EMA200, confirming a long-term uptrend, while its RSI of 61 indicates healthy momentum without being overheated — an “ideal setup for breakout traders.”
Strong Fundamentals, Steady Growth
The company’s net sales have risen from ₹8,434 crore in March 2023 to ₹10,210 crore in June 2025, with PAT at ₹1,497 crore, showing consistent earnings improvement.
Key financial metrics underline its strength:
- PE ratio: 21.9 (vs Bajaj Auto at 32.3, TVS Motor at 69.3)
- ROE: 23.7%
- ROCE: 31.7%
“Hero looks undervalued yet efficient — a balanced play among two-wheeler peers,” the StockEdge report noted.
Sectoral Tailwinds and Market Sentiment
Analysts at CLSA highlighted that mass-market auto players like Hero Moto and Maruti Suzuki have delivered 200–300 basis points market share gains year-on-year during the festive season, supported by strong retail growth and affordability tailwinds after GST rate cuts.
Business Standard reported that Hero MotoCorp shares have surged 28% in 2025, buoyed by rising scooter and export sales, along with the company’s expanding electric vehicle portfolio.
A Macro-Economic Undercurrent
An X post by Getting Stated, a market commentary handle, drew an interesting macro linkage:
“Hero Moto thrived when wages at the bottom half got a booster dose between 2003–2014. Wages fell after 2014, which threw Hero Moto off the ring. The current revival, aided by GST reforms, may restore that old dynamic between affordability and rural consumption.”
The post suggests that Hero MotoCorp’s long-term performance remains tied to rural wage trends and purchasing power, a key macroeconomic driver for entry-level motorcycles.
Hero MotoCorp’s revival appears more than a short ride — backed by strong fundamentals, favourable macro trends, and technical resilience. But as one analyst put it, “momentum may be data-driven, but sustainability will depend on demand durability.”
(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)
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