Karvy Stock Broking has maintained its outperformer rating on Hero Honda Motors with a price target of Rs 1,250 in its April 16, 2009 research report.
“Hero Honda Motors (HHML) is expected to report robust topline and bottom line growth during 4QFY09. On YoY basis, we expect the company’s revenues to grow by 17.5% from Rs 27,887 million to Rs 32,762 million. Revenues during the quarter are expected to grow on account of volume growth and increase in realization. On YoY basis the company has registered a healthy 12.9% growth in volumes on back of 100% growth in the scooter segment and 11% growth in the sub125cc segment. Net realization in the quarter is expected to improve by 4% on YoY basis on back of excise duty benefits and passing of raw material price increase onto the consumers.”
“We are marginally increasing our sales and net profit estimates (by 1%) for FY09 on back of better than expected volume nos. for the month of March (8% higher than our estimates). We continue to maintain our Outperformer rating on the stock with our price target of Rs 1,250,” says Karvy Stock Broking’s research report.
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