HEROMOTOCO (Hero MotoCorp Ltd) vs BSE Sensex 30 Comparison

HEROMOTOCO

BSE Sensex 30

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HEROMOTOCO

BSE Sensex 30

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1Y 3Y 5Y 10Y 15Y 20Y

HEROMOTOCO

BSE Sensex 30

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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BSE Sensex 30

HEROMOTOCO

BAJAJ-AUTO

EICHERMOT

TVSMOTOR

7272

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1Y 3Y 5Y 10Y 15Y 20Y

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Back to HEROMOTOCO Analysis

Hero MotoCorp Ltd
Glance View

Market Cap

848.5B INR

Industry

Automobiles

Economic Moat

None

In the bustling landscape of Indian industry, Hero MotoCorp Ltd. stands as a towering figure in the world's largest two-wheeler market. Born from a collaboration with Japan's Honda Motor Co., Hero MotoCorp has grown beyond its roots, emerging as the largest manufacturer of motorcycles and scooters globally in terms of unit volume. The company's headquarters in New Delhi orchestrates a vast network of production plants spread across India, ensuring not only high production capacity but also a strategic advantage in distribution. Hero MotoCorp's rise is marked by its relentless focus on providing affordable and fuel-efficient motorcycles, which have become the everyday travel companion for millions of Indians navigating the subcontinent's diverse terrains. The mechanisms behind Hero MotoCorp's success are shrewdly orchestrated. The company leverages its robust supply chain to secure cost-effective raw materials and components, which are synthesized into affordable yet durable vehicles appealing to a broad demographic. Its aggressive and innovative marketing strategies further fortify its market position, driving brand loyalty among a growing middle class. Hero MotoCorp makes money by maintaining high sales volumes through an expansive dealership network, both domestically and in over 40 countries worldwide. Moreover, its investments in research and development have enabled the firm to embrace technological advancements, integrating features that enhance performance and sustainability, thus continuing to strengthen its foothold in both emerging and developed markets.

View HEROMOTOCO Analysis

HEROMOTOCO Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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IN		Eicher Motors Ltd NSE:EICHERMOT	Add
IN		TVS Motor Company Ltd NSE:TVSMOTOR	Add
JP		Yamaha Motor Co Ltd TSE:7272	Add
CN		AIMA Technology Group Co Ltd SSE:603529	Add
CN		Yadea Group Holdings Ltd HKEX:1585	Add
US		Harley-Davidson Inc NYSE:HOG	Add
IN	O	Ola Electric Mobility Ltd NSE:OLAELEC	Add
CN		Loncin Motor Co Ltd SSE:603766	Add
CN		CETC Acoustic-Optic-Electronic Technology Inc SSE:600877	Add

IN		Bajaj Auto Ltd NSE:BAJAJ-AUTO	Select
IN		Eicher Motors Ltd NSE:EICHERMOT	Select
IN		TVS Motor Company Ltd NSE:TVSMOTOR	Select
JP		Yamaha Motor Co Ltd TSE:7272	Select
CN		AIMA Technology Group Co Ltd SSE:603529	Select
CN		Yadea Group Holdings Ltd HKEX:1585	Select
US		Harley-Davidson Inc NYSE:HOG	Select
IN	O	Ola Electric Mobility Ltd NSE:OLAELEC	Select
CN		Loncin Motor Co Ltd SSE:603766	Select
CN		CETC Acoustic-Optic-Electronic Technology Inc SSE:600877	Select

IN		Bajaj Auto Ltd NSE:BAJAJ-AUTO	Add
IN		Eicher Motors Ltd NSE:EICHERMOT	Add
IN		TVS Motor Company Ltd NSE:TVSMOTOR	Add
JP		Yamaha Motor Co Ltd TSE:7272	Add
CN		AIMA Technology Group Co Ltd SSE:603529	Add
CN		Yadea Group Holdings Ltd HKEX:1585	Add
US		Harley-Davidson Inc NYSE:HOG	Add
IN	O	Ola Electric Mobility Ltd NSE:OLAELEC	Add
CN		Loncin Motor Co Ltd SSE:603766	Add
CN		CETC Acoustic-Optic-Electronic Technology Inc SSE:600877	Add

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HEROMOTOCO

vs

BSE Sensex 30

Stocks Performance
HEROMOTOCO vs BSE Sensex 30

Performance Gap
HEROMOTOCO vs BSE Sensex 30

Performance By Year
HEROMOTOCO vs BSE Sensex 30

Competitors Performance
Hero MotoCorp Ltd vs Peers

Hero MotoCorp Ltd
Glance View

Company

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HEROMOTOCO vs BSE Sensex 30

Stocks Performance HEROMOTOCO vs BSE Sensex 30

Performance Gap HEROMOTOCO vs BSE Sensex 30

Performance By Year HEROMOTOCO vs BSE Sensex 30

Competitors Performance Hero MotoCorp Ltd vs Peers

Hero MotoCorp Ltd Glance View

Company

Help

Tools

Stocks

HEROMOTOCO

vs

BSE Sensex 30

Stocks Performance
HEROMOTOCO vs BSE Sensex 30

Performance Gap
HEROMOTOCO vs BSE Sensex 30

Performance By Year
HEROMOTOCO vs BSE Sensex 30

Competitors Performance
Hero MotoCorp Ltd vs Peers

Hero MotoCorp Ltd
Glance View