Hero MotoCorp Ltd.

- A SNAPSHOT
BUSINESS DESCRIPTION

What does it do and how : It is an Indian Motorcycle and scooter manufacturer. It has 4 manufacturing facilities based at
Dharuhera, Neemrana and Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together have a production
capacity of 7.6 million 2-wheelers per year.
One key differentiator or USP : Wide product variety, excellent brand equity & high customer loyalty.
Recent Developments or Growth Plans : The company aims to cross 100 million units in cumulative production, and annual
bike and scooter sales of 12 million units till 2020.

CATEGORY-WISE OR GEOGRAPHY-WISE REVENUE SPLIT

REVENUE MODEL
Set up as a . Motorcycle and Scooter Manufacturing Company and sells its own product.
Charging to . As per customer needs they provide different motor bikes to different customers
Pricing at . 35000 To 105000.

Indian Promoters
Sub total

Banks Fin. Inst. and Insurance

FII's
Sub total
Private Corporate Bodies
NRI's/OCB's/Foreign Others
Others
Sub total
General public
Grand total

SHAREHOLDING STRUCTURE
Share holding pattern as on : 31/12/2015
Face value : 2
No. Of Shares
Promoter's holding
69166082
69166082
Non promoter's holding
Institutional investors
25424978
78067304
112780520
Other investors
4898821
4898821
12842077
199687500

% Holding
34.64
34.64

12.73
39.09
56.48
2.45
2.45
6.43
100

KEY RATIOS
P/E RATIO
EPS
GROSS PROFIT TO SALES
OPERATING EXPENSES TO SALES
NET EARNING TO SALES
CURRENT RATIO
ASSETS TEST
DEBTORS TURNOVER RATIO
INVENTORY TURNOVER RATIO
DEBT TO EQUITY
RETURN ON AVERAGE EQUITY
TOTAL ASSETS TURNOVER

2014-15
22.1
119.5
23.20%
14.20%
8.90%
0.93
0.67
18.25 Days
11.13
0.01
39.3
2.63

COMMENTARY (CONCLUSION)
Hero MotoCorp Ltd. (HML) has been one of the biggest wealth creators in the Indian stock market history.Over the last 10 years,
the stock has returned around 24% per year, which is an amazing long term average.On the business front, the company has been
at the forefront of the 2-wheeler revolution in the country. Since 2001, it has been the largest 2-wheeler manufacturer in the
world.As far as its financial performance is concerned; its sales and profits have grown at average annual rates of 18% each over
the past 10 years. This growth has been without any damage to the balance sheet. Debt remains minimal, its working capital cycle
is small, and cash generation has been tremendous. A company that has grown its sales and profits at 18% per year across
market cycles is bound to do good in the future. If not 18%, even if it achieves 15% growth, I can earn a handsome return on my
investment. The balance sheet is clean, the cash flows are solid, the brand is well-known, and now the valuations are also
decent.