Hero MotoCorp Limited (HEROMOTOCO.NS) stock analysis

In our weekly check, Hero MotoCorp Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 2, red flags: 4.

About Hero MotoCorp Limited

Hero MotoCorp Limited is a Consumer Cyclical company (Auto - Manufacturers) based in India, listed on NSE as HEROMOTOCO.NS.

What our checks show for HEROMOTOCO.NS

Red flags

• Operating profit does not cover the interest bill (0.8x): interest is paid from cash or new debt.
• The dividend takes 5799% of profit: little cushion if profit falls.
• The stock has fallen as much as 62% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 3.6 years.

Warning signs

• The gross margin fell by 2.1 points, to 25.4%: costs are rising faster than prices.
• Analysts expect the net margin to shrink by 1 points from today's 12.1%.

Strengths

• Net debt is only 0x a year of EBITDA: the balance sheet has room.
• The net margin rose by 4.1 points over 5 years, to 12.1%.
• Operating cash flow is 1.49x net profit: the profit arrives as real cash.
• Earnings per share grew 26.8% a year over the last 3 years.
• Net profit grew 26.9% a year over the last 3 years.
• Free cash flow is 15.7% of revenue: cash for dividends, buybacks or growth.

Next earnings report: 2026-10-28

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Questions

What grade does Hero MotoCorp Limited (HEROMOTOCO.NS) have?

In our weekly check, Hero MotoCorp Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 2, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of HEROMOTOCO.NS stock?

This week's biggest flags for Hero MotoCorp Limited: Weak interest cover, Dividend stretched, Deep past fall. In total 6 of 25 checks show a warning or a red flag.

What does Hero MotoCorp Limited do?

Hero MotoCorp Limited is a Consumer Cyclical company (Auto - Manufacturers) based in India, listed on NSE as HEROMOTOCO.NS.

When does Hero MotoCorp Limited report earnings next?

The next earnings report is expected on 2026-10-28. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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