Sep 6, 2021

Hero MotoCorp is looking at right price with right time to take an entry

Already stock market is trading at high valuations but economic growth is not matching. We need to keep ourselves ready for correction. Small Cap investors need to be more cautious. Small Cap investors have earned very high income in past one and half year. Now, time is to either preserve the gain or shift toward more secure counters. 

Time is very ripe to take an entry into Hero MotoCorp at this price. TVS Motor could also be good to take entry but Hero Moto is looking better. TVS Motor has very high Debt.

Current Market price is Rs 2817. In Oct 2020, HERO MOTO has a tie-up with Harley Davidson which will help the company in premium segment later.

The company is trading at PE 18.1 against its long-term average of 19.6. 

Job loss of common people could hurt this company as this is more into entry-level segment. But, auto segment was already into recession here in India for many reasons. Regulatory reason was also there (BS VI).

I think in case of strong market correction, being here is safer than at any other place. Earning potential is also there.