Pick of the Week (HEROMOTOCORP)

1. About HERO MOTOCORP LTD.
 Hero Motocorp Ltd., formerly Hero Honda, is an Indian motorcycle and scooter manufacturer based in New
Delhi, India. The company is the largest two wheeler manufacturer in India.In India, it has a market share of
about 46% share in 2-wheeler category. The 2006 Forbes 200 Most Respected companies list has Hero
Honda Motors ranked at #108. Presently, the market capitalisation of the company is INR 54,678.
 In 2001, the company became the largest two-wheeler manufacturing company in India and globally. It
maintains global industry leadership till date. Hero MotoCorp has four manufacturing facilities based at
Dharuhera, Neemrana and Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together have
a production capacity of 7.6 million 2-wheelers per year. Read More Hero MotoCorp has a sales and service
network with over 6,000 dealerships and service points across India. It has a customer loyalty program since
2000, called the Hero Honda Passport Program which is now known as Hero GoodLife Program. Hero
GoodLife
 It is reported that Hero MotoCorp has five joint ventures or associate companies, Munjal Showa, AG
Industries, Sunbeam Auto, Rockman Industries and Satyam Auto Components, that supply a majority of its
components. The company has a stated aim of achieving revenues of $10 billion and volumes of 10 million
two-wheelers by 2016–17.
 Technical Outlook
 On daily chart, recently stock has managed to close above its multiple resistance line which stands at
2655 level which shows stock could give upside from present level.
 Beside, stock has been trading in a rising channel on daily chart which shows that stock likely to continue
with its contemporary move in coming trading session.
 Moreover, on monthly chart, it seems that prices have been forming bullish engulfing candlestick which
shows bullish sign for the counter.
 Momentum indicator RSI reading above 60 levels with positive crossover point out for high momentum in
prices.
 Based on the mentioned technical setup we believe the stock could reach towards 3100 levels in few
trading sessions.
Company HEROMOTOCORP
Recommendation Buy
Sector : 2/3 Wheelers
CMP : 2740 & Buy upto 2680
Price Potential : 3100
Stop loss (Closing Basis): 2550
Mkt Cap (Rs. Cr.): 54,678
TM EPS (Rs) 119.47
TTM Sales (Rs. Cr.) 27,351
BVPS (Rs.) 327.58
Reserves (Rs. Cr.) 6,501
P/BV 8.36
PE 22.92
Bloomberg Code : HMCL:IN
Reuters Code : HROM.NS
TM= Twelve months
TTM= Trailing 12 months
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
Pick of the Week: HERO MOTOCORP LTD.
25th July, 2015
www.choiceindia.com *Please Refer Disclaimer on Website

2. Pick of the Week: HERO MOTOCORP LTD.
25th July 2015
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
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the recommendations stated in this report is derived purely from technical analysis. Choice Broking has based this document on information obtained from sources it believes to be reliable but which it has not independently verified; Choice Broking
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Contact Us
Kunal Pamar (Research Associate)
kunal.pamar@choiceindia.com
PERFORMANCE TRACKER
Amit Pathania(Research Associate)
amit.pathania@choiceindia.com
www.choiceindia.comcustomercare@choiceindia.com
Chandrakant Maske(Research Associate)
chandrakant.maske@choiceindia.com
Date Lot Size
Type of
Call
Equity Initiated SL TGT Result
Profit /
Loss
Total
Profit
06.06.15 1000 Buy BHEL 246.45 225 300 BookProfit@259on25.06.15 12.55 12550
13.06.15 125 Buy ACC 1370-1400 1330 1550 BookProfit@1477on23.06.15 77 9625
20.06.15 125 Buy BAJAJAUTO 2405.6 2300 2700 BookProfit@2538on26.06.15 132.4 16550
27.06.15 100 Buy TV18BROADCAST 37.6 33 48 BookProfit@41.40on06.07.15 3.8 380
04.07.15 500 Buy KOTAK BANK 1420-1440 1340 1600-1650
11.07.15 250 Buy HDFCBANK 1092.45 1040 1160-1200
17.07.15 100 Buy GICHousing 233.6 215 285
Total 39105
Vikas Chaudhari(Research Associate)
Vikas.chaudari@choiceindia.com
Ritesh PatelResearch Associate)
Ritesh.patel@choiceindia.com