auto
Hero MotoCorp
HEROMOTOCO · Nifty 50
₹5,016.4
Price 2026-06-17
At a Glance
Fundamental
95/100
STRONG
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
Hero MotoCorp scores 95/100 on fundamentals (strong). Hero MotoCorp: BROAD EXPANSION regime.
Fundamental Score: 95/100 · STRONG · 0 signals detected
DuPont Analysis
ROE 26.6% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 26.57% is strong efficiency-driven and stable. Net margin of 12.1% × asset turnover of 1.42x × leverage of 1.5x.
What This Means
Net margin of 12.1% means the company keeps ₹12.1 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 1.42x means the company efficiently uses its assets to generate revenue. Leverage of 1.5x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
33.2%
Operating
15.8%
Net
12.1%
Gross margin 33.2% → operating margin 15.8% → net margin 12.1%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
ADEQUATECash flow covers net income 1.4x — earnings are ADEQUATE quality. Cash conversion is reasonable.
Debt Sustainability
COMFORTABLEInterest covered 96.0x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.1x is low — balance sheet has capacity.
Free Cash Flow
STRONGFCF margin at 15.2% — strong cash generation. Business is self-funding.
Peer Comparison
Hero MotoCorp is compared against 10 peers in the auto sector.
Key Watchpoints
Breaks above ₹5267 (+5%)
Trend reversal confirmation
Breaks below ₹4766 (-5%)
Further downside risk
Auto sector entering leadership
Sector rotation signal
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Elevated risk score. Review audit, board, and shareholder rights metrics.
High refinancing risk. Company needs to roll over debt frequently. Vulnerable to credit market freezes.
🔴 2 CRITICAL flags — significant concerns. Investigate before investing.
Data Quality
News Correlation
50 articles scanned for fundamental themes