Time for Hero to shine again??
Below a small quarterly and half yearly performance comparison with TVS
HERO: Q2 EPS has shot up from 34.45 2022 to 50+ 2023; 46% growth
TVS: EPS flat at 8.14
H1'24 HeroMoto EBIDTA grew 28% while TVS had 24% growth
While TVS is trading at EV/EBIDTA of 17.5; Hero is trading at a much lower 11.4!
If Hero can start excelling TVS on Ebidta growth levels for a few more quarters, it can be much better on PAT/EPS level — Hero has no debt, while TVS’s balance sheet is stretched with D/E 2.04
Remember Harley Davidson and other new launches are yet to start showing in the P&L from Q3 onwards…