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 HERO MOTOCORP (HEROMOTOCO-IN)
Automobiles & Auto Parts / Automobiles & Auto Parts / Auto & Truck Manufacturers DETAILED STOCK REPORT
Report Date: 2020 June 09

Last Close Avg Daily Vol 52-Week High Trailing PE Annual Div ROE LTG Forecast 1-Mo Return
2,384.30 (INR) 2.2M 3,022.90 12.3 97.00 27.5% -4.5% 21.5%
2020 June 08 Market Cap 52-Week Low Forward PE Dividend Yield Annual Rev Inst Own 3-Mo Return
NSE Exchange
465.2B 1,475.00 25.4 4.1% 308.7B 37.6% 17.0%

AVERAGE SCORE
POSITIVE OUTLOOK: HEROMOTOCO's Score Averages
current score of 9 places it within the top 15% of Automobiles & Auto Parts Group: 5.8 Large Market Cap: 6.6
stocks scored. Automobiles & Auto Parts Sector: 5.8 BSE Sensex Index: 6.6

Average Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend

Positive BAJAJ.AUTO 9 8 9 9 10
EICHERMOT 7 8 7 9 9
Neutral HEROMOTOCO 5 9 9 9 9
M&M 6 7 7 8 8
Negative
TVSMOTOR 4 6 6 5 4
2017-06 2018-06 2019-06 2020-06

HIGHLIGHTS I/B/E/S MEAN

- The score for Hero MotoCorp last changed from 10 to 9 on
2020-05-24. Buy Mean recommendation from all analysts covering
43 Analysts the company on a standardized 5-point scale.
- The recent change in the Average Score was primarily due to a
decline in the Price Momentum component score.
Strong Strong
Sell Hold Buy
Sell Buy

PRICE AND VOLUME CHARTS

1-Year Return: -13.7% 5-Year Return: -5.4%

BUSINESS SUMMARY
Hero MotoCorp Limited is a two-wheeler manufacturer. The Company manufactures and sells motorized two wheelers up to 350 cubic centimeters (cc)
engine capacity, spare parts and related services. Its products include Karizma ZMR, Karizma, Xtreme Sports, Xtreme, Hunk, Impulse, Achiever,
Ignitor, Glamour Programmed FI, Glamour, Super Splendor, Passion XPRO, iSmart 110, Passion PRO, Passion PRO TR, Splendor iSmart, Splendor
PRO Classic, Splendor PRO, Splendor+, HF Deluxe ECO, HF Deluxe, HF Dawn, Duet, Maestro Edge, Maestro and Pleasure. It offers over 20 products
comprising 100 cubic centimeters (CC), 110CC, 125CC, 150CC, 225CC and scooter category. Its manufacturing plants are located in Dharuhera,
Haryana; Gurgaon, Haryana; Haridwar, Uttarakhand; Neemrana, Rajasthan, and Villa Rica, Colombia. Its research and development center is located
in Jaipur, Rajasthan. It has a Global Parts Centre for manufacturing and supplying the parts at local and global markets at Neemrana, Rajasthan.

Page 1 of 11
© 2020 Refinitiv. All rights reserved.
 HERO MOTOCORP (HEROMOTOCO-IN)
Automobiles & Auto Parts / Automobiles & Auto Parts / Auto & Truck Manufacturers DETAILED STOCK REPORT
Report Date: 2020 June 09

INDICATOR COMPONENTS
The AVERAGE SCORE combines the quantitative analysis of five widely-used investment decision making tools: Earnings,
Fundamental, Relative Valuation, Risk, and Price Momentum. A simple average of the underlying component ratings is normally
distributed to rank stocks on a 1-10 scale (10 being awarded to the most favorable). These factors may be evaluated differently using
alternative methodologies and the importance of individual factors varies across industries, market capitalization and investment styles.
Additional criteria should always by used to evaluate a stock.

Earnings Fundamental Relative Valuation Risk Price Momentum

PEER ANALYSIS Currency in INR

PRICE MOMENTUM VALUATION FUNDAMENTAL ANALYSTS

Average Price 1-Mo 3-Mo 1-Yr Market Trailing Forward Dividend Net LTG I/B/E/S # of
Score Ticker (2020-06-08) Return Return Return Cap PE PE Yield Margin Forecast Mean Analysts
5 MARUTI 5,734.80 23.2% -11.0% -17.5% 1.7T 30.6 32.9 1.1% 7.5% -- Buy 44
10 BAJAJ.AUTO 2,801.05 15.8% 2.4% -5.4% 815.2B 15.4 19.4 4.3% 17.4% 3.4% Buy 47
8 M&M 470.85 21.8% 0.0% -26.9% 570.2B 24.8 13.5 1.8% 2.0% -- Buy 36
9 EICHERMOT 16,894.85 21.9% -4.8% -15.5% 471.6B 23.1 26.3 1.1% 21.9% -0.1% Buy 40
9 HEROMOTOCO 2,384.30 21.5% 17.0% -13.7% 465.2B 12.3 25.4 4.1% 12.3% -4.5% Buy 43
5 TATAMOTORS 115.45 42.4% 1.1% -31.9% 304.3B -- 33.1 -- -0.4% -- Buy 32
4 TVSMOTOR 352.75 12.5% -14.8% -26.6% 168.8B 27.3 40.3 1.2% 3.3% 6.4% Sell 39
4 ASHOKLEY 53.05 12.8% -25.5% -41.1% 134.3B 13.8 36.4 3.9% 5.8% -- Buy 40
4 FORCEMOT 945.00 17.1% -5.8% -38.0% 11.4B 15.1 -- 0.5% 2.3% -- -- --
9 ATULAUTO 170.10 11.1% -16.5% -42.1% 3.6B 6.0 6.4 1.6% 9.1% -- Strong Buy 4
7 SCOOTER 25.00 24.7% 17.7% -16.5% 2.0B -- -- -- -19.4% -- -- --
6.7 Average 2,722.47 20.4% -3.7% -25.0% 424.1B 18.7 26.0 2.2% 5.6% 1.3% Buy 36.1

PEER COMPANIES
MARUTI Maruti Suzuki India TVSMOTOR TVS Motor Co
BAJAJ.AUTO Bajaj Auto ASHOKLEY Ashok Leyland
M&M Mahindra and Mahindra FORCEMOT Force Motors
EICHERMOT Eicher Motors ATULAUTO Atul Auto
TATAMOTORS Tata Motors SCOOTER Scooters India

Page 2 of 11
© 2020 Refinitiv. All rights reserved.
 HERO MOTOCORP (HEROMOTOCO-IN)
Automobiles & Auto Parts / Automobiles & Auto Parts / Auto & Truck Manufacturers DETAILED STOCK REPORT
Report Date: 2020 June 09

EARNINGS Currency in INR

POSITIVE OUTLOOK: Strong earnings with Earnings Score Averages

recent analyst upgrades or a history of Automobiles & Auto Parts Group: 6.4 Large Market Cap: 5.7
surpassing consensus estimates. Automobiles & Auto Parts Sector: 6.4 BSE Sensex Index: 6.5

Earnings Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend

Positive HEROMOTOCO 5 8 10 9 10
BAJAJ.AUTO 8 10 10 10 9
Neutral M&M 6 8 8 8 8
EICHERMOT 7 8 8 7 7
Negative
TVSMOTOR 4 9 8 7 4
2017-06 2018-06 2019-06 2020-06

EARNINGS INDICATORS
Earnings Surprises Estimate Revisions Recommendation Changes
(33.3% weight) (33.3% weight) (33.3% weight)

EICHERM…
TVSMOTO…
HEROMOT…
BAJAJ.AUT…
M&M

BAJAJ.AUT…
HEROMOT… EICHERM…
BAJAJ.AUT…
M&M HEROMOT…
M&M

EICHERM… TVSMOTO… TVSMOTO…

Last 4 Years Last 4 Weeks Last 120 Days

# Positive Surprises (> 2%) 1 # Up Revisions 0 # Broker Upgrades 18
# Negative Surprises (< -2%) 0 # Down Revisions 0 # Broker Downgrades 1
# In-Line Surprises (within 2%) 3 Avg Up Revisions 0.0%
Avg Surprise 0.3% Avg Down Revisions 0.0%

HIGHLIGHTS PRICE TARGET

- Hero MotoCorp currently has an Earnings Rating of 10, which is The chart indicates where analysts predict the stock price will be within
significantly more bullish than the Auto & Truck Manufacturers industry the next 12 months, as compared to the current price.
average of 7.3. HEROMOTOCO scores a bullish 7 or greater for two
of three component ratings. 3,600 12-Month Price Target
HIGH Mean (INR) 2,330.00
- Over the past 90 days, the consensus price target for HEROMOTOCO 3,200
High 3,250.00
has decreased notably from 2,700.00 to 2,330.00, a loss of -13.7%. 2,800
2,384.30 Low 1,660.00
- HEROMOTOCO's current quarter consensus estimate has decreased 2,400 MEAN Target vs. Current -2.3%
notably over the past 90 days from 159.50 to 154.00, a loss of -3.4%.
2,000 # of Analysts 43
However, during the same time period, the average decline for the
industry was a greater -23.0%. 1,600 LOW
Current Price Price Target
(INR)

Page 3 of 11
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 HERO MOTOCORP (HEROMOTOCO-IN)
Automobiles & Auto Parts / Automobiles & Auto Parts / Auto & Truck Manufacturers DETAILED STOCK REPORT
Report Date: 2020 June 09

EARNINGS PER SHARE

Actuals Estimates
25.86
50.00 47.23

Earnings per share (EPS) is calculated 40.00 Quarterly 20-03 20-06

by dividing a company's earnings by the Mean 23.230 4.390
number of shares outstanding. Analysts 30.00
tend to interpret a pattern of increasing High 23.230 4.390
20.00
earnings as a sign of strength and flat Low 23.230 4.390
or falling earnings as a sign of 10.00 HIGH # of Analysts 1 1
weakness. MEAN
0.00 LOW
The charts provide a comparison 19-03 19-06 19-09 19-12 20-03 20-06
between a company's actual and
estimated EPS, including the high and Actuals Estimates
low forecasts. 200 186.30

180 172.40
HIGH
Annual 2020 2021
Mean 154.0 135.3
160
High 161.7 178.7
140 MEAN Low 149.6 101.0
120 # of Analysts 7 9

100 LOW
2018 2019 2020 2021

MEAN ESTIMATE TREND ANALYST RECOMMENDATIONS

Q Q Y Y Price I/B/E/S Mean: Buy (43 Analysts)
20-03 20-06 2020 2021 Target
Current 23.230 4.390 154.0 135.3 2,330.00
Strong Buy 19
30 Days Ago 23.230 4.390 155.3 136.8 2,450.00 Buy 12
90 Days Ago 31.990 -- 159.5 159.7 2,700.00 Hold 8
% Change (90 Days) -27.4% -- -3.4% -15.3% -13.7%
Sell 4
Current Fiscal Year End: 20-03
Next Expected Report Date: 2020-06-09 Strong Sell 0

EARNINGS SURPRISES
Comparing a company's actual earnings to the mean expectation of Surprise Detail (Last 6 Periods)
analysts results in a difference referred to as a 'positive' or 'negative'
surprise. Research has shown that when a company reports a Surprise Announce Period End Actual Mean Surprise
surprise, it is often followed by more of the same surprise type. Type Date Date EPS EPS (%)
Surprise Summary (Last 6 Years) In-Line 2019-04-26 2019-03-31 172.4 174.2 -1.0%
In-Line 2018-05-02 2018-03-31 186.3 186.7 -0.2%
Surprise Type Amount Percent
Positive 2017-05-10 2017-03-31 179.5 173.0 3.8%
Positive Years (> 2%) 1 16.7%
In-Line 2016-05-05 2016-03-31 154.9 156.8 -1.2%
Negative Years (< -2%) 1 16.7%
Negative 2015-05-07 2015-03-31 125.7 131.5 -4.4%
In-Line Years (within 2%) 4 66.7%

ANNUAL REVENUE
A pattern of increasing sales in Actuals Estimates
conjunction with a rising EPS may
influence a buy recommendation, while 360B
339.7B 2020 2021
flat or falling sales and faltering 340B
earnings may explain a sell 324.6B Mean 292.5B 281.7B
recommendation. A rising EPS with flat 320B High 302.4B 293.0B
or falling sales may result from
increased cost efficiency and margins, 300B
Low 288.6B 261.5B
rather than market expansion. This HIGH
Forecasted Growth -13.9% -17.1%
chart shows the sales forecast trend of 280B MEAN
# of Analysts 7 7
all analysts and the highest and lowest
260B LOW
projections for the current and next 2018 2019 2020 2021
fiscal year.

Page 4 of 11
© 2020 Refinitiv. All rights reserved.
 HERO MOTOCORP (HEROMOTOCO-IN)
Automobiles & Auto Parts / Automobiles & Auto Parts / Auto & Truck Manufacturers DETAILED STOCK REPORT
Report Date: 2020 June 09

FUNDAMENTAL
POSITIVE OUTLOOK: Strong fundamentals Fundamental Score Averages
such as high profit margins, low debt levels, or Automobiles & Auto Parts Group: 5.6 Large Market Cap: 6.4
growing dividends. Automobiles & Auto Parts Sector: 5.6 BSE Sensex Index: 6.1

Q2 Q3 Q4 Q1
Fundamental Score Trend Peers 2019 2019 2019 2020 Current 3Y Trend
EICHERMOT 10 10 10 NR 10
Positive
BAJAJ.AUTO 9 9 9 NR 9
Neutral HEROMOTOCO 8 7 6 NR 8

Negative M&M 5 4 4 NR 3

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 TVSMOTOR 2 2 2 NR 2
2017 2018 2019

FUNDAMENTAL INDICATORS
Profitability Debt Earnings Quality Dividend
(25% weight) (25% weight) (25% weight) (25% weight)

BAJAJ.… EICHER…
BAJAJ.…
EICHER… BAJAJ.… M&M
EICHER…
HEROM… HEROM…

BAJAJ.…
TVSMO… HEROM… EICHER…
M&M TVSMO… TVSMO…
HEROM…

M&M
M&M
TVSMO…

Revenue Growth 4.7% Current Ratio 2.1 Oper. Cash Yield -64.4% Dividend Growth 2.1%
For year over year For interim period For latest 12 months For year over year
ending 2019-03 ending 2019-09 ending 2019-03 ending 2019-12
Gross Margin 11.9% Debt-to-Capital 0.9% Accruals 14.1% Dividend Payout 50.9%
For latest 12 months For annual period For latest 12 months For latest 12 months
ending 2019-12 ending 2019-03 ending 2019-03 ending 2019-12
Return On Equity 27.5% Interest Funding 0.8% Days Sales In Inv. 15.7 Dividend Coverage 1.7
For interim period For interim period For annual period For annual period
ending 2019-03 ending 2019-03 ending 2019-03 ending 2019-03
Net Margin 12.3% Interest Coverage 90.0 Days Sales In Rec. 30.2 Current Div. Yield 4.1%
For latest 12 months For interim period For annual period For latest 12 months
ending 2019-12 ending 2019-12 ending 2019-03 ending 2020-06

HIGHLIGHTS
- Hero MotoCorp currently has a Fundamental Rating of 8, which is - The company's operating cash yield has been lower than its industry
significantly more bullish than the Automobiles & Auto Parts industry group average for each of the past five years.
group average of 5.6. - Of the 144 firms within the Automobiles & Auto Parts industry group,
- The company's net margin has been higher than its industry group Hero MotoCorp is among 96 companies that pay a dividend. The
average for each of the past five years. stock's dividend yield is currently 4.1%.
- The company's current ratio has been higher than its industry group
average for each of the past five years.

Page 5 of 11
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 HERO MOTOCORP (HEROMOTOCO-IN)
Automobiles & Auto Parts / Automobiles & Auto Parts / Auto & Truck Manufacturers DETAILED STOCK REPORT
Report Date: 2020 June 09

RELATIVE VALUATION
NEGATIVE OUTLOOK: Multiples significantly Relative Valuation Score Averages
above the market or the stock's historic norms. Automobiles & Auto Parts Group: 5.5 Large Market Cap: 2.8
Automobiles & Auto Parts Sector: 5.5 BSE Sensex Index: 2.7

Relative Valuation Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend

Positive M&M 9 8 6 5 5
HEROMOTOCO 6 6 3 2 2
Neutral TVSMOTOR 3 3 3 2 2
BAJAJ.AUTO 1 3 1 1 1
Negative
EICHERMOT 1 1 1 1 1
2017-06 2018-06 2019-06 2020-06

RELATIVE VALUATION INDICATORS

Price to Sales Trailing PE Forward PE
(50% weight) (25% weight) (25% weight)

M&M
HEROMOT… M&M
TVSMOTO…
BAJAJ.AUT… BAJAJ.AUT…
HEROMOT…

EICHERM… EICHERM…
BAJAJ.AUT…
TVSMOTO… HEROMOT…
EICHERM…
M&M TVSMOTO…

Price to Sales 1.4 Trailing PE 12.3 Forward PE 25.4

5-Yr Average 2.0 5-Yr Average 18.4 5-Yr Average 17.6
Rel. to 5-Yr Avg. 32% Discount Rel. to 5-Yr Avg. 33% Discount Rel. to 5-Yr Avg. 44% Premium
BSE Sensex Index 2.4 BSE Sensex Index 23.8 BSE Sensex Index 21.4
Rel. to BSE Sensex 44% Discount Rel. to BSE Sensex 48% Discount Rel. to BSE Sensex 19% Premium

HIGHLIGHTS
- Hero MotoCorp currently has a Relative Valuation Rating of 2 while - Based on Trailing P/E, HEROMOTOCO currently trades at a 47%
the S&P BSE SENSEX index has an average rating of 2.7. Discount to its Automobiles & Auto Parts industry group peers. On
average, the company has traded at a 34% Discount over the past five
- HEROMOTOCO's Price to Sales ratio and Trailing P/E are both years.
significantly below (less expensive than) their 5-year averages.
- HEROMOTOCO's 25.4 Forward P/E is currently at the high end of its
- Based on Price to Sales, HEROMOTOCO currently trades at a >100% 5-year range (lowest 11.4 to highest 25.4).
Premium to its Automobiles & Auto Parts industry group peers. On
average, the company has traded at a >100% Premium over the past
five years.

Page 6 of 11
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 HERO MOTOCORP (HEROMOTOCO-IN)
Automobiles & Auto Parts / Automobiles & Auto Parts / Auto & Truck Manufacturers DETAILED STOCK REPORT
Report Date: 2020 June 09

PRICE TO SALES TRAILING PE

The most recent week's close price divided by the revenue per share. The most recent week's close price divided by the sum of the four most
recently reported quarterly earnings.
Price to Sales: 1.4 Trailing PE: 12.3
5-Year Average: 2.0 5-Year Average: 18.4
BSE Sensex Index Average: 2.4 BSE Sensex Index Average: 23.8
Automobiles & Auto Parts Group Average: 0.7 Automobiles & Auto Parts Group Average: 23.2
2.8 28
2.6 26
2.4 24
2.2 22
2.0 5-Yr Average 20
1.8 18 5-Yr Average

1.6 16
1.4 14
1.2 12
1.0 10
0.8 8
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019

FORWARD PE FORWARD PEG

The most recent week's close price divided by the sum of the four The Forward P/E divided by the five-year forecasted growth rate.
upcoming quarterly consensus estimates.
Forward PE: 25.4 Forward PEG: --
5-Year Average: 17.6 5-Year Average: 2.4
BSE Sensex Index Average: 21.4 BSE Sensex Index Average: 2.1
Automobiles & Auto Parts Group Average: 26.3 Automobiles & Auto Parts Group Average: 4.3
30 >5.0
28 4.5
26 4.0
24 3.5
22 3.0
20 2.5 5-Yr Average
18 5-Yr Average 2.0
16 1.5
14 1.0
12 0.5
10 0.0
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019

Page 7 of 11
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 HERO MOTOCORP (HEROMOTOCO-IN)
Automobiles & Auto Parts / Automobiles & Auto Parts / Auto & Truck Manufacturers DETAILED STOCK REPORT
Report Date: 2020 June 09

RISK
POSITIVE OUTLOOK: Consistent return Risk Score Averages
patterns (low volatility). Automobiles & Auto Parts Group: 5.6 Large Market Cap: 8.0
Automobiles & Auto Parts Sector: 5.6 BSE Sensex Index: 8.4

Risk Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend

Positive BAJAJ.AUTO 10 9 9 9 9
EICHERMOT 7 8 9 9 9
Neutral HEROMOTOCO 8 10 9 9 9
TVSMOTOR 8 9 9 9 9
Negative
M&M 9 10 8 8 7
2017-06 2018-06 2019-06 2020-06

RISK INDICATORS
Magnitude of Returns Volatility Beta (1-year) Correlation
(25% weight) (25% weight) (25% weight) (25% weight)

BAJAJ.…
EICHER… BAJAJ.…
HEROM…
HEROM… EICHER…
M&M
TVSMO… HEROM…
TVSMO…
BAJAJ.… TVSMO…
EICHER…

M&M M&M

TVSMO…
BAJAJ.…
EICHER…
HEROM…
M&M

Daily Returns (Last 90 Days) Standard Deviation Beta vs. BSE Sensex 0.95 Correlation vs. BSE Sensex
Best 11.8% Last 90 Days 4.61 Positive Days Only 1.11 Last 90 Days 71%
Worst -11.0% Last 60 Months 8.67 Negative Days Only 0.81 Last 60 Months 67%
Monthly Returns (Last 60 Months) Intra-Day Swing (Last 90 Days) Beta vs. Group 0.98 Correlation vs. Group
Best 35.7% Average 6.3% Positive Days Only 0.90 Last 90 Days 61%
Worst -22.2% Largest 21.7% Negative Days Only 1.01 Last 60 Months 67%

HIGHLIGHTS RISK ANALYSIS

- Hero MotoCorp currently has a Risk Rating of 9 while the S&P Last 90 Days Last 60 Months
BSE SENSEX index has an average rating of 8.4. Best Worst # # Largest Best Worst
- On days when the market is up, HEROMOTOCO tends to Daily Daily Days Days Intra-Day Monthly Monthly
outperform the S&P BSE SENSEX index. However, on days Peers Return Return Up Down Swing Return Return
when the market is down, the shares generally decrease by HEROMOTOCO 11.8% -11.0% 33 24 21.7% 35.7% -22.2%
less than the index.
- In both short-term and long-term periods, HEROMOTOCO has BAJAJ.AUTO 12.1% -13.7% 33 24 25.3% 29.7% -30.0%
shown high correlation (>= 0.4) with the S&P BSE SENSEX EICHERMOT 10.5% -12.6% 32 25 28.6% 26.9% -21.3%
index. Thus, this stock would provide only low levels of
diversification to a portfolio similar to the broader market. M&M 16.9% -9.3% 34 23 24.3% 28.7% -37.7%
- Over the last 90 days, HEROMOTOCO shares have been more TVSMOTOR 9.0% -12.8% 27 30 19.3% 20.4% -31.7%
volatile than the overall market, as the stock's daily price
fluctuations have exceeded that of 66% of S&P BSE SENSEX BSE Sensex 9.0% -13.2% 32 26 15.8% 14.4% -23.1%
index firms.

Page 8 of 11
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 HERO MOTOCORP (HEROMOTOCO-IN)
Automobiles & Auto Parts / Automobiles & Auto Parts / Auto & Truck Manufacturers DETAILED STOCK REPORT
Report Date: 2020 June 09

PRICE MOMENTUM Currency in INR

POSITIVE OUTLOOK: Strong recent price Price Momentum Score Averages

performance or entering historically favorable Automobiles & Auto Parts Group: 6.1 Large Market Cap: 7.1
seasonal period. Automobiles & Auto Parts Sector: 6.1 BSE Sensex Index: 6.2

Price Momentum Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend

Positive BAJAJ.AUTO 7 4 6 8 9
EICHERMOT 7 8 4 8 9
Neutral M&M 1 4 7 9 9
HEROMOTOCO 1 4 7 9 8
Negative
TVSMOTOR 7 7 4 6 7
2017-06 2018-06 2019-06 2020-06

PRICE MOMENTUM INDICATORS

Relative Strength Seasonality
(70% weight) (30% weight)

BAJAJ.AUT…
EICHERM…
HEROMOT…
M&M

BAJAJ.AUT…
EICHERM…
TVSMOTO… TVSMOTO…
HEROMOT…
M&M

Relative Strength Indicator (Scale from 1 to 100) Average Monthly Return (Last 10 Years)
HEROMOTOCO Industry Avg JUN JUL AUG
Last 1 Month 62 60 Company Avg 1.7% -1.8% 3.0%
Last 3 Months 54 50 Industry Avg 0.7% 0.0% 0.9%
Last 6 Months 50 48 Industry Rank 56 of 93 71 of 94 18 of 91

PRICE PERFORMANCE
Daily close prices are used to calculate the HEROMOTOCO HEROMOTOCO BSE Sensex
performance of the stock as compared to a
BSE Sensex Close Price (2020-06-08) 2,384.30 34,371
relevant index over five time periods.
52-Week High 3,022.90 41,953
2.5%
1-Week 52-Week Low 1,475.00 25,981
3.2%

21.5% - On 2020-06-08, HEROMOTOCO closed at 2,384.30, 21.1%

1-Month
8.6% below its 52-week high and 61.6% above its 52-week low.
- HEROMOTOCO shares are currently trading 18.4% above
17%
3-Month their 50-day moving average of 2,013.46, and 3.2% above their
-8.5% 200-day moving average of 2,310.59.
-2.4% - The S&P BSE SENSEX index is currently 18.1% below its 52-
YTD week high and 32.3% above its 52-week low.
-16.7%

-13.7%
1-Year
-13.2%

Page 9 of 11
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 HERO MOTOCORP (HEROMOTOCO-IN)
Automobiles & Auto Parts / Automobiles & Auto Parts / Auto & Truck Manufacturers DETAILED STOCK REPORT
Report Date: 2020 June 09

DETAILED STOCK REPORT TIPS Mean Estimate Trend

The mean estimates show how the consensus has changed over the past 30 days
The Stock Report from Refinitiv is a comprehensive, company-specific analysis that and 90 days for the upcoming two quarters (when available) and two years. The
includes a proprietary Stock Rating along with underlying component indicators and percentage change is calculated for the company as a means for comparison by
supportive data elements. The report is updated daily, although some of the data measuring the difference between the current consensus estimate and that of 90
elements and the ratings are updated weekly. days ago.
Average Score Analyst Recommendations
The Stock Reports Plus Average Score combines a quantitative analysis of five The I/B/E/S Mean is the average recommendation of all analysts covering the stock,
widely-used investment decision making tools - Earnings, Fundamental, Relative as provided by I/B/E/S, the Institutional Brokers Estimate System, from Refinitiv.
Valuation, Risk, and Price Momentum. First, a simple average of the five underlying The recommendations are presented on a five-point standardized scale: strong buy,
component ratings is calculated. Then, a normal distribution is used to rank each buy, hold, reduce, and sell.
stock across the market on a scale of 1 to 10, with 10 being most favorable. A
score of 8 to 10 is considered positive, 4 to 7 is neutral, and 1 to 3 is negative. Earnings Surprises
These five factors may be evaluated differently using alternative methodologies, ● The surprise summary includes the total number of time periods (and
and the importance of individual factors varies across industry groups, market percentage) in the last 12 quarters (quarterly) or last 4 years (annual) in which
capitalization and investment styles. Additional criteria should always be used to earnings surprises were positive, negative, or in-line. In order to be recognized
evaluate a stock. as a positive or negative surprise, the percent must be greater than 2% above or
2% below the consensus, respectively.
A company must have sufficient data available for at least three of the five ● The surprise detail section includes a listing of the company's quarterly earnings
component indicators in order to receive an overall Average Score. Approximately reported for the most recent 6 periods (quarters or years). The consensus
85% of the stocks within the coverage universe meet the criteria to generate a analyst estimate is provided to determine if the actual earnings report
score. represented a positive surprise, negative surprise, or in-line result.
Indicator Components Fundamental
The five indicators that comprise the stock rating are displayed. Like the stock The Fundamental Rating is based on a combination of four fundamental component
rating, the component rating scale is 1 to 10, with 10 being best. A company will factors: profitability, debt, earnings quality, and dividend. Companies that do not
receive an ‘NR’ for No Rating if the required data elements or criteria are not met. A pay a dividend are not penalized. Each factor is equally weighted. Then, equal
detailed section for each component is included in the report. deciles are used to rank each stock across the market on a scale of 1 to 10, with 10
being most favorable. A stock needs to have at least two of the four fundamental
Indicator Trends factors present in order to receive a score.
Within each component section, historical score trends are displayed, typically using
a 4-week moving average over a timeframe of the past three years. The dotted ● Profitability is comprised of four data elements.
orange line indicates the average of the scores over those three years. The most - Revenue Growth: (Net Sales – Previous Net Sales) / Previous Net Sales
recent occurrences of the best and worst scores are also displayed on the chart in - Gross Margin: Gross Profit / Net Sales
grey boxes to put the current score into historical context. - Return on Equity: Net Income / Total Equity
- Net Margin: Net Profit / Net Sales
Next to the trend chart for the company, current score averages are included, along ● Debt is comprised of four data elements.
with peer company comparisons of values from 6 months ago, 3 months ago, 1 - Current Ratio: Current Assets / Current Liabilities
month ago, the most recent value from 1 week ago, and the current score. The four - Debt-to-Capital: Total Debt / Total Capital
closest industry peers are presented based on similar market capitalization. - Interest Funding: (Interest Expense on Debt + Preferred Cash Dividends) /
Funds from Operations
Peer Analysis - Interest Coverage: Earnings before Interest and Taxes / (Interest Expense on
● The Refinitiv Business Classification (TRBC) schema is used for industry Debt + Preferred Cash Dividends)
comparisons. It is designed to track and display the primary business of a ● Earnings Quality is comprised of four data elements.
corporation by grouping together correlated companies that offer products and - Operating Cash Yield: (Operating Cash Flow – Net Income) / Net Income
services into similar end markets. The system includes 10 Economic Sectors, 28 - Accruals: (Net Income – Operating Cash Flow – Investing Cash Flow) /
Business Sectors, 54 Industry Groups, and 136 Industries. Average Net Operating Assets
● The Peer Analysis section of the report compares the company to its ten closest - Days Sales in Inventory: 365 / (Cost of Goods Sold / Inventory)
peers. The peers are selected from the industry based on similar market - Days Sales in Receivables: 365 / (Net Sales / Receivables)
capitalization. The peer listing may have fewer than ten companies if there are ● Dividend is comprised of four data elements. The company must have a current
fewer than ten companies within that industry classification. dividend yield.
- Dividend Growth Rate: (Dividends per Share – Previous Dividends per Share)
Highlights / Previous Dividends per Share
The automated text-generation system from Refinitiv creates highlights - Dividend Payout: Dividends per Share / Earnings per Share
summarizing the most noteworthy data. The bullets will vary by company and will - Dividend Coverage: Funds from Operations / Cash Dividends
change from week to week as different criteria are met. - Dividend Yield: Annual Dividends per Share / Current Market Price per Share

Earnings Indicator Trend

The Earnings Rating is based on a combination of three factors: earnings surprise, The fundamental indicator trend displays either quarterly scores over the past three
estimate revision, and recommendation changes. Each factor is equally weighted. years or annual scores over the past six years, depending on the reporting periods
Then, equal deciles are used to rank each stock across the market on a scale of 1 for the country. The best and worst scores can be easily determined from the
to 10, with 10 being most favorable. A stock needs to have at least two of the three values shown on the chart for each quarter or year.
earnings factors in order to receive a score.
Relative Valuation
● Earnings Surprises - The number of positive and negative surprises within the The Relative Valuation Rating is based on a combination of three component
last 4 periods (quarters or years). factors: Price to Sales (50% weight), Trailing P/E (25% weight), and Forward P/E
● Estimate Revisions - The number of up and down revisions and the average (25% weight). After the weightings are considered to combine individual factors,
percentage change of those revisions within a 4 week period. equal deciles are used to rank each stock across the market on a scale of 1 to 10,
● Recommendation Changes - The number of broker upgrades and downgrades in with 10 being most favorable. These common valuation metrics are evaluated
the last 120 days. against the overall market, the index, and the company's own historic 5-year
averages. A stock needs to have at least one of the three relative valuation factors
Price Target in order to receive a score.
The price target is based on the predictions of analysts covering the stock and
shows the high, low and mean price expected within the next 12 months. ● Price to Sales: Close Price / (Sales for 4 Quarters or 1 Year / Shares
Outstanding)
Earnings Per Share ● Trailing P/E: Close Price / Most Recent 4 Quarters or 1 Year of Earnings
The quarterly and annual earnings per share are presented when available, along ● Forward P/E: Close Price / Upcoming 4 Quarters or 1 Year of Earnings
with the mean, high and low. Quarterly data is displayed for the past 4 quarters
(actual) and the next 2 quarters (estimated). Annual data is displayed for the past 2
years (actual) and the next 2 years (estimated).

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© 2020 Refinitiv. All rights reserved.
 HERO MOTOCORP (HEROMOTOCO-IN)
Automobiles & Auto Parts / Automobiles & Auto Parts / Auto & Truck Manufacturers DETAILED STOCK REPORT
Report Date: 2020 June 09

Valuation Averages
Negative values are excluded when calculating the averages. A maximum value of
100 is placed on Trailing P/E and Forward P/E, a maximum value of 5 is placed on
Forward PEG, and a maximum value of 20 is placed on Price to Sales when
calculating the averages. Higher values are rounded down to the maximum for the
averages.

Valuation Multiples
The valuation multiples provide the Trailing P/E, Forward P/E, Forward PEG, and
Price to Sales for the company and the S&P 500 index average. In addition, a
comparison of the current company’s values to its 5-year average and an industry
average are presented. A discount occurs when the company’s ratio is valued
more favorably (lower) than that to which it is compared.

Risk
The Risk Rating displays stocks on a scale of 1 to 10 with 10 being awarded to the
least risky stocks. It is derived by looking at a series of long-term (5-year) and
short-term (90-day) stock performance measures including volatility, magnitude of
returns, beta, and correlation. Each factor is equally weighted. Then, equal deciles
are used to rank each stock across the market. A stock needs to have at least two
of the four risk factors in order to receive a score.

● Magnitude of Returns – The best / worst daily returns in the past 90 days and the
best / worst monthly returns in the past 60 months.
● Volatility – The standard deviation of the stock price over the last 90 days and
last 60 months, along with the average and largest intra-day stock swing.
● Beta – Measures the tendency of a security’s returns to respond to swings in the
market, based on the beta of the company versus the relevant index.
● Correlation – Determines how closely the returns of the stock and the relevant
index move together, measured over the last 90 days and last 60 months.

Risk Analysis
Price analysis for the company and the relevant index is provided over two time
periods. Daily analysis is provided for the last 90 days, whereas monthly statistics
are used for the last 60 months.

Price Momentum
The Price Momentum Rating is based on a combination of two technical
performance factors: relative strength (70% weight) and seasonality (30% weight).
After the weightings are considered to combine individual factors, equal deciles are
used to rank each stock across the market on a scale of 1 to 10, with 10 being most
favorable. A stock needs to have data for the relative strength factor in order to
receive a score.

● Relative Strength – The relative strength of the company for the last 1 month, 3
months, and 6 months on a scale of 1 to 100.
● Seasonality – The average monthly return (price performance) for the current
month and next 2 months for the company and industry, over the past 10 years.
A lower industry rank indicates a higher return.

Price Performance
Daily close prices are used to calculate the price performance of the stock. The
performance of the relevant index is also displayed as a means of comparison.

DISCLAIMER
© 2020 Refinitiv. Republication or redistribution of Refinitiv content, including by
framing or similar means, is prohibited without the prior written consent of Refinitiv.
All information in this report is assumed to be accurate to the best of our ability.
Refinitiv is not liable for any errors or delays in Refinitiv content, or for any actions
taken in reliance on such content.

Any forward-looking statements included in the Refinitiv content are based on

certain assumptions and are subject to a number of risks and uncertainties that
could cause actual results to differ materially from current expectations. There is no
assurance that any forward-looking statements will materialize.

The content in this Refinitiv report does not constitute investment advice or a
recommendation to buy or sell securities of any kind. Past performance is not a
guarantee of future results. Investors should consider this report as only a single
factor when making an investment decision.

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