Arihant Capital’s research report on Hero MotoCorp
Hero MotoCorp (HMCL) below estimates all front in Q1FY22. Weak realizations, Ebitda and Ebitda margins are below estimates. •Standalone revenue from operations grew by 84.7% YoY/-36.8% QoQ stood at INR 54,871 Mn in Q1 FY22 against our estimate of INR 57,945 Mn. Gross margin of the company decreased by 200bps YoY/-210bps QoQ at 27.5% due to commodity cost pressure. EBITDA grew by 376.5%YoY/-57.5QoQ to INR 5,148 Mn against our estimate of INR 6,793 Mn. EBITDA margin expanded by 575bps YoY/-456 QoQ to 9.4% Q1FY22 vs our estimate of 11.7%. The Company reported net Profit of INR 3,654 Mn in Q1FY22 against our estimate of INR 4,943 Mn. The total volumes (Motorcycles + Scooters) grew by 81.3% YoY to 10,24,489 units. The blended realization has seen an increase of 1.8% YoY/-3.3% QoQ to INR 53,559 unit on account of better product mix.
Outlook
We value Hero MotoCorp at PE of 16x to its FY23E EPS estimate of INR ~197, which yields a target price of INR 3,156. We assign an Accumulate rating on the stock.
Top 5 Value Stocks To Buy For 2023: Colliers International Group Inc. (CIGI)
Colliers International Group Inc. provides commercial real estate services to real estate occupiers, owners, and investors worldwide. The companys Sales and Lease Brokerage Division offers transaction brokerage services, including landlord representation, tenant representation, and capital markets and investment services, as well as property management, leasing, and valuations. This division provides its services for various asset classes, including office, industrial, retail, multi-family, hotel and mixed-use properties. Its Outsourcing & Advisory Services Division offers corporate solutions, such as portfolio management, transaction management, project management, workplace solutions, strategic consulting, property and asset management, and other corporate real estate services, as well as lease administration and facilities management systems; valuation and advisory services comprising valuation and appraisal review and management, portfolio or single asset valuation, arbitration and consulting, various studies, tax appeals, and litigation support; property and asset management services consisting of property level accounting, tenant service/relations and bidding, awarding and administering subcontracts for management and maintenance, landscaping, security, parking, capital, and tenant improvements. This division also provides project management services, including bid document review, construction monitoring and delivery management, contract administration and integrated cost control, facility and engineering functionality, milestone and performance monitoring, quality assurance, risk management, and strategic project consulting; workplace solutions, such as visioning, change management, and strategic consulting services; property marketing services for commercial and residential projects; and research services for owners and landlords. The company was founded in 1972 and is headquartered in Toronto, Canada.
