Hero MotoCorp Share: The shares of two-wheeler manufacturing company Hero MotoCorp Limited have been downgraded by brokerage firm Jefferies. Due to this, the stock was seen trading in the red on December 18. The stock fell nearly 5 percent from its previous closing price to a low of Rs 5,524.55 on BSE.
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Jefferies has reduced the rating of Hero MotoCorp shares from ‘Hold’ to ‘Underperform’. Along with this, the brokerage has also reduced its price target from Rs 5,550 to Rs 4,950 per share. This new target is about 15 percent less than the closing price of December 17.
Jefferies is positive about the overall demand outlook of the two-wheeler sector. However, the brokerage says that the increase in demand after the GST cut has weakened in November and December. Apart from this, Hero MotoCorp’s market share in terms of vehicle registration has also decreased again in December.
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Hero MotoCorp’s valuation is expensive
According to Jefferies, shares of Hero MotoCorp have increased by about 40 percent so far this year. This rise has mainly come due to increase in valuation. The brokerage believes that its valuation at 20 times the estimated P/E ratio for FY27 looks expensive.
Earlier, UBS had also expressed concern about the huge decline in the company’s market share in the beginning of December. Hero MotoCorp’s market share was 35 percent in November 2025, which has come down to about 19 percent so far in December.
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Shares rose 30 percent in 6 months
Currently, 42 analysts are covering Hero MotoCorp. Of these, 26 have given ‘Buy’ rating on the stock, 10 have advised ‘Hold’ and 6 have advised ‘Sell’. In November, Prabhudas Lilladher had given ‘buy’ rating on the stock with a target of Rs 6,190.
Whereas Motilal Oswal has advised ‘buy’ with a target of Rs 6,500. The market capitalization of the company is more than Rs 1.13 lakh crore. The stock has risen nearly 30 percent in the last six months.
By the end of September 2025, the promoters’ stake in the company was 34.73 percent. Hero MotoCorp’s standalone revenue in the September 2025 quarter stood at Rs 12,126.37 crore, while net profit was recorded at Rs 1,392.83 crore. For the entire financial year 2025, the company’s standalone revenue was Rs 40,756.37 crore and net profit was Rs 4,609.95 crore.
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