FINANCE & STOCK ADVICE: My View On Hero Honda

About The Company

The Company was Incorporated on 19th January,1984 at New Delhi. The Company Manufacture motor cycles upto 100 cc capacity. The Company was promoted by Hero Cycles (P) Ltd. (HCPL).

The Company entered into a technical-cum-financial collaboration agreement with Honda Motor Co. Ltd., Japan (HML). As per this collaboration agreement, HML was to furnish complete technical information and know-how and trade secrets and other relevant data.Thereafter the company was titled as Hero Honda.

- Hero Honda CD-100 is the first four stroke motorcycle to be introduced in India in 100cc range. Its most attractive features are fuel efficiency and its light weight. CD-100 will be equipped with electronic ignition system, illuminated speedometer, 4 speed gear box, neutral and flasher indicators, etc.

About the Financials

The company has posted a very good result for the quarter. Its total turnover (Net sales & Other Operating income), YoY, grew 36% at Rs.3202 crore. Total sales for Q2 stands at 9,72,095 units, growth of 28.5%. Net profit showed a healthy growth of 50% at Rs.306.30 crore. It currently has an enviable market share of 55% in the Indian domestic two wheeler industry. This improvement in performance comes on the back of falling demand, rising interest rates and overall negative sentiments. Hence the improvement, despite all this, comes as a shock more than a surprise.

Hero Honda's cumulative sales for the first six months (H1) stands at 18, 66,339 units of two-wheelers compared to 15, 59,486 units sold in H1 in the last FY – reflecting a consistent 19.7 per cent growth in cumulative sales.

The Highlights of the Counter

1. The company has completed 25 years of excellence in the Indian Markets.

2. The company plans to double production to 4,000 units at its Haridwar plant beginning next fiscal.

3. The 100 cc bike market comprises two third of the two-wheeler motorcycles sales of Hero Honda’s, reflecting the trend of the industry.

About The Stock

Though the stock has been badly hit in this extreme fall but as the fundamentals remains good so one can hold on this counter and could opt for partial fresh investment.

Disclaimer : I do not have any personal holding in this stock.

MULTI BAGGER STOCK GROUP

Some of my group's multi bagger picks during the rally were NMDC , MMTC , STC , Larsen ,Jindal Steel & Power , Unitech , BF Utilities , Jai Corporation , Walchand Nagar Industries, RNRL , Reliance Infra (Reliance Energy) etc.

I had been long associated with a corporate engaged in financial services , where with the assistance of specialized tools along with my special analysis as per some historical accepted theories of stock market like W. D. GANN's Theory , Elliot Wave Theory and others are used with reliable insider information of so called " operators" who play a major role to make a stock ,a Multi Bagger ,I do make my gem picks in this market.

I had been running my group , where the associated people get the reliable and most beneficial to get the unexpected return as seen in the above mentioned tips. Say for example the stock called MMTC had jumped from 2000 level to 56000 per share of historical price where the capital appreciated by 28 times in very short period with 2700% return on capital employed. Likewise in RNRL we started accumulating at RS 25 level from where we saw it moving at 250 level giving 10 times with 900% return.

These sort of return is helpful as ,

1. Handsome gain will make a jack to our capital.

2. Limited stocks trade , as daily trade could be avoided , which is more risky.

3. Long term capital gain , so no tax liability.

4. Whole income in white, which could be further deposited into fixed deposit to get assured monthly income later.

5. Strong income tax file without paying any taxes.

Our role here could be summarized as :

1. Giving tips to all registered member at proper time , when the stock is just about to take off, neither too early not too late.

2. Make sure investor do not gt stuck into it.

3. Recommend to exit when the operator is about to leave it.which is the most important work or else the whole accumulated and deemed profit will be washed away along with part of investment and will remain stuck for long - long period.


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My View On Hero Honda