
Stocks of the day : Today the market’s focus was on Hero Moto and Tata Motors. One saw a rise of up to 4 percent and the other saw a decline of 5 percent. While Hero Moto has been the diamond of today, Tata Motors has been the zero of today. If we look at the reason for this, Hero Moto’s Q2 results have been excellent. The company’s profit has increased by 24 percent. According to the company, the two-wheeler market is likely to grow by 8-10 percent in the future. The company will also benefit from new launches and market growth; the company can further outperform in the domestic and export markets.
Brokerage bullish on Hero Moto
hero moto But brokerages are also bullish. morgan stanley to the stock OVERWEIGHT While giving rating, a target of Rs 6471 has been given. There itself, JM Financial has its BUY rating Giving a target of Rs 6471. Motilal Oswal has also given BUY rating to this stock and set a target of Rs 6,500.
Morgan Stanley on Hero Moto Says that the market cap of the company will not decrease further. Market share increase in scooters, EVs, premium bikes is positive. Margins may increase to 15.8% by FY28. There itself, JM Financial Says FY26E and FY27E volume estimates raised by 0.3%. At the same time, an increase of 1.6% and 4.8% is possible in EPS estimates. there Motilal Oswal is of the opinion that a jump of about 6 per cent in volume CAGR is possible between FY26–28. New launches and surge in exports will support the company’s growth.
Keep an eye on ABS deadline
On November 11, officials from SIAM, Hero, TVS, Bajaj met Nitin Gadkari. The industry told the good and bad things about ABS in two-wheelers. The industry has requested to implement ABS in phases. According to the industry, due to ABS, the price will increase by Rs 4000-6000 depending on the model.
Why did Tata Motors PV break?
Tata Motors PV Q2 results have been weak. Its results have been bad on all scales. Both standalone and consolidated incurred adjusted losses. JLR has suffered an impact of Rs 2,008 crore due to cyber attack.
Tata Motors PV reported an adjusted loss of Rs 237 crore in Q2 (standalone) against a profit of Rs 15 crore. Margin has come down from 6 percent to 2.4 percent.
JLR’s condition in Q2
Its revenue declined by 24.3% during this period to £4.9 Bn. At the same time, EBITDA declined by 1,330 bps to -1.6% and EBIT margin declined by 1,370 bps to -8.6%.
Management commentary on JLR
Company management says that Q3 may also remain weak. The situation may become normal by Q4. The company has reduced EBIT margin guidance from 5-7% to 0-2%. Cash outflow is expected to increase to £2.5 bn from almost zero.
Management commentary on Indian business
The growth estimate of Tata Motors PV is in line with the industry. Passenger vehicle growth is likely to remain in double digits in the second half. Double digit margins are possible in the PV ICE business. The Sierra model is launching in November. New petrol variants of Harrier and Safari will come.
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