M&M vs Hero MotoCorp: Which auto stock should you bet on for long-term? Here’s a 5-point analysis | Stock Market News
Source: Live Mint
M&M vs Hero MotoCorp: Leading Indian auto majors Mahindra & Mahindra (M&M) and Hero MotoCorp have received fresh reviews and upgrades from domestic brokerages after the conclusion of the July-September quarter results for fiscal 2024-25 (Q2FY25). While M&M’s new compelling electric vehicle ranges have made the stock an attractive buy, Hero Moto Corp has witnessed an uptrend on a strong quarterly performance despite external headwinds.
The auto sector’s Q2FY25 performance was shaped by varied trends across segments. Original equipment manufacturers (OEMs) reported muted topline growth due to sustained weakness in the Commercial Vehicle (CV), Passenger Vehicle (PV), and global luxury segments. Auto ancillaries, however, saw robust earnings growth during the September quarter, according to domestic brokerage firm Kotak Institutional Equities’ latest report.
The brokerage said that the aggregate revenue of auto OEMs under its coverage universe was up two per cent in Q2FY25, driven by a double-digit YoY increase in 2W segment volumes, a richer product mix, and price hikes, which were partly offset by a nine per cent YoY decline in the CV sales volumes, a one per cent decline in PV sales volumes, and a 10 per cent YoY decline in the JLR business.
