Hero MotoCorp Ltd (formerly Hero Honda) is the World`s single largest two-wheeler motorcycle manufacturer company based in India Hero Honda started its operations in 1984 as a joint venture between Hero Cycles (India) and Honda (Japan). Munjal family (Founders of Hero Cycles) and Honda group both owned 26% stake in the Company.
In 2010, when Honda decided to move out of the joint venture, Hero Group bought the shares held by Honda, and focused on its entirely owned subsidiary, Honda Motorcycle and Scooter India (HMSI).
Pawan Munjal is the current chairman & M.D & CEO of Hero MotoCorp Ltd.
The company has a good dividend track report and has consistently declared dividends for the last 5 years.
HMCL has huge cash and liquid investments of over Rs.4600 crores. Unutilised bank lines and cash accrual of Rs 1500 crore per annum will be sufficient to fund capex of Rs 1000-1500 crore annually.
For the quarter ended 31-12-2019, the company has reported a consolidated sale of Rs 7074.53 Crore, down -7.65 % from last quarter Sales of Rs 7660.27 Crore and down -10.87 % from last year same quarter Sales of Rs 7936.88 Crore Company has reported net profit after tax of Rs 880.13 Crore in latest quarter. As on 31-12-2019, the company has a total of 199,737,238 shares outstanding.
CRISIL has reaffirmed its ratings on the debt programmes and bank loan facilities of Hero MotoCorp Limited (HMCL) at ‘CRISIL AAA/FAAA/Stable/CRISIL A1+’. The ratings continue to reflect a strong business risk profile because of a leadership position in the two-wheeler market in India, and a robust financial risk profile due to a large net worth, nominal debt, and substantial liquid surplus.
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