The problem with hero was low margins because of its portfolio comprising of low margin vehicles and rural slowdown due to high prices of their bikes, the management execution on premiumisation will in my opinion lead to rerating they have introduced a lot of products in their portfolio if it reaches good scale valuations whould be much higher as compared to TVS due to no debt, I have invested primarily because of its investments in Ather which I think is growing very fast, I was amongst the first buyers of it in my city in 2020 its really a nice bike and since now they are entering internatinal markets starting Nepal, also if management can deliver on premiumisation front with subsidies now reduced by a lot many substandard EV brands which used to import from China will not be able to survive, also EV prices will increase so only strong players will survive so the trend due to shift in EVs will take time, heromoto corp is in a good position now, only instead of positioning vida as a premium product they could have tried to make a mass market vehicle and dominate that space.
If company delivers on premiumisation will add more.
Disc: Invested and biased.
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