ICRA Equity Research has assigned fundamental grade of 5/5 for Hero Honda Motors (Hero Motocorp) indicating strong fundamentals. The rating agency has also retain valuation grade of ‘C’ to the company on a grading scale of ‘A to E’, which indicates that the company is fairly valued on a relative basis.
The rating agency assigned the said rating to the company, considering the 2W industry’s steadier growth prospects over the medium term in relation to other automobile segments, the strong brand equity enjoyed by the company’s select models and the company’s established supply chain, distribution channel and scale economies.
The company’s net profit for the quarter surged by 13.46% at Rs 557.89 crore as compared to Rs 491.69 crore for the quarter ended June 30, 2010. Its total net operating income has increased by 32.29% to Rs 5683.83 crore for the quarter under review from Rs 4296.61 crore for the corresponding quarter of the previous year.
| Company Name | CMP |
|---|---|
| Bajaj Auto | 9777.15 |
| Hero MotoCorp | 5229.25 |
| TVS Motor | 3743.60 |
| Eicher Motors | 7189.40 |
| Ather Energy | 850.65 |
| View more.. | |
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