Wednesday, September 17, 2008

Hero Honda an outperformer: HDFC Securities

HDFC Securities has maintained its outperformer rating on Hero Honda Motors with a target of Rs 841 in its September 15, 2008 research report. "Hero Honda Motors, the world’s largest two-wheeler manufacturer, reported sales of 305,516 units, a growth of 26.8% over August 07. This was on the back of new launches, mainly Splendor NXG, CBZ-Xtreme and Hunk. It’s better than industry sales performance in last few months has helped the company gain market share across segments with overall share of 59% in the domestic market. On a YTD basis, it reported a growth of 19.0% yoy at 1,481,077 units. At the CMP of Rs 834, the stock trades at 15x and 13.2x its FY09E and FY10E earnings respectively. We maintain our ‘Outperformer’ rating on the stock with a target price of Rs 841/share," says HDFC Securities' report.

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