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Hero MotoCorp surges 4%, tops Nifty - is this the auto stock to bet on? | Zee Business

Published 10 hours ago2 minute read

Shares of Hero MotoCorp Ltd. surged 4 per cent to Rs 4,414 on Monday, becoming the top gainer on the Nifty 50, after the company announced an ambitious global expansion strategy and reported strong financial results for FY25 in its annual report.

The company revealed plans to enter key European markets — including Germany, France, Spain, and the UK — in the second quarter of FY26, marking a significant step in its strategy to expand beyond its traditional domestic stronghold. This move follows a robust performance in international markets during FY25, particularly in South Asia and Latin America.

Hero MotoCorp has also sharpened its focus on the 125cc motorcycle segment, with the Xtreme 125R emerging as a standout performer, alongside continued demand for the Glamour. The company reported quick market share gains in this segment and expects the trend to persist.

For the financial year ended March 31, 2025, the company posted a revenue of Rs 40,756.37 crore, up from Rs 37,455.72 crore in FY24. Profit after tax rose to Rs 4,609.95 crore, compared to Rs 3,967.96 crore a year earlier, driven by operational strength and improved product mix.

Sales volumes reached 59 lakh units in FY25, up from 56 lakh in FY24 and 53 lakh in FY23. The increase was supported by strong demand in scooters and premium motorcycles, a recovery in rural markets, and a series of product updates. However, volumes remain slightly below the pre-pandemic peak of 58 lakh units in FY21.

Earnings per share (EPS) climbed to Rs 231 in FY25, compared to Rs 199 in FY24, Rs 146 in FY23, and Rs 124 in FY22, reflecting consistent improvement in shareholder returns.

With a solid domestic base, a growing premium offering, and renewed focus on global markets, Hero MotoCorp is positioning itself for the next phase of growth as a diversified global two-wheeler brand.

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