https://www.moneylife.in/article/whether-a-hero-or-a-sparrow/66762.html
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the board of directors is impressive.
Air Marshall BS Dhanoa of the Rafale fame.
Mr. Rajnish Kumar, ex-SBI.
Mr. M.Damodaran, who is on board of L&T, Tech Mahindra, Biocon, Interglobe aviation and Bajaj Allianz.
Two such incidents where the companies in question handled the situation extremely well are
- Infosys whistleblower event. The stock fell 16% but rose much higher when a clean chit was given by independant auditors.
- Welspun India. The stock fell 48% over the Egyptian cotton issue. Welspun quickly hired and external auditor and streamlined their internal policies. The stock is back to its highs today.
But we also have incidents such as DHFL where the company fell posts uncovering of the fraud. The only difference was that the Wadhawans at DHFL and HDIL already had a bad reputation.
Adding a video on this topic.
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I doubt IT department can know in 2 days what the inflated expenses are…this is not a small company. Only thing I can think of is there is some political issue or someone from inside the company tipped off the IT authorities to some irregularities.
But until IT department officially says something everything is just conjecture. After all, 1000 cr. expenses are nothing compared to size of the company.
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Quite damaging observations…Never expected from Hero group… 
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What should long term holders do after such allegations? Any advice please? Things like these in top companies makes one feel a bit scared while investing.
DISC: Invested and Curious
The promoters have increased their stake by buying ~46000 shares (should amount to10 crores+)
is this an act of desperation or confident about self?
Disc - continue to be invested
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So after those IT raids a month back, I’m surprised there hasn’t been a follow up in the media. I can’t find even a single report /article.
Interesting.
Looking at the previous track record of Hero, Do you feel the company has been left far behind in the EV race? Also, what do you think of new players like Ola coming into the picture while Hero’s lacking the similar kind of vision in the segment?(Ola Electric is very active with the EV Marketing and all)
Asking because the 2W segment doesn’t provide enough opportunity for future growth if we remove the EV play (Quarterly Results are consistently poor). If anyone tracks EV segment closely, please explain!
Disc: Invested and Curious
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Reliable 2W EV are not affordable at present. They cost around 1.25 L to 1.5 L. The price differential between EV and ICE 2W means an EV buyer will be able to recover the extra cost in 3-5 years depending on usage.
Further, after 5 years, again battery will need to be replaced, say again 30k to 40k expenses after 5 years for an EV holder.
Hence, with current battery prices, EV 2W are not a profitable investment.
Hero, being an experienced company, has all these calculations in mind and hence going slow. They mentioned in one concall that in the medium term, EV business will not provide any profits at EBITDA levels.
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Same here. Nobody asked about it during earning call too. Market seems to be the playground of bade log only.
Expect Hero EV to launch in or near July for the big metro cities where EV is hitting them the most. Actually, the shift to EV is only at the Scooter level right now while after years of Scooters gaining retail share, last couple of years we are seeing another sentiment shift towards preferring Motorcycles (might be because Rural India sees them as more economical), so in many ways EVs are impacting Honda, TVS and Suzuki more than HMCL.
If you want to see the actual performance of Auto manufacturers, forget their dispatch figures and look at Vahaan market share - this data is publicly available for 33 states. Hero is now also tracking this at district level, and this will lead to better retail strategies I believe.
Coming back to EV topic, the question is how the new entrants such as Ola perform in long term after sales and service. We have already seen the problems with the products, two-wheeler manufacturing is a complex process with many companies involved in the supply chain. What will happen if one of those pieces falls out of play? In EV, Hero should be more worried about when Honda will have their Activa EV model than Ola especially because Hero’s EV won’t be under brand Hero.
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Supply chain issues delay launch of Hero EVs
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ELECTRIC VEHICLES OF HERO MOTOCORP CAN BE LAUNCHED UNDER THE
TRADEMARK ‘HERO’, RULES ARBITRATION TRIBUNAL
The Hero ® trademark can be used by Hero MotoCorp Ltd. for selling its Electric Vehicles,
the Arbitration Tribunal ruled on Thursday. Hero Electric had sought an injunction against Hero MotoCorp using the trademark ‘Hero’ for its electric vehicles.
Significantly, the Arbitration Tribunal emphasised on the investments to the tune of Rs. 400 crores made by Hero MotoCorp Ltd. on the business of Electric Vehicles and expenses of almost Rs. 7,000 Crores on brand building of Hero ® in the past 10 years. The Arbitration Tribunal has found the case of Hero Electric unmerited in the interim. The Tribunal would now conclude the matter after final consideration of the case.
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Tribunal permits Hero MotoCorp to sell EVs under ‘Hero’ trademark
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The tribunal refused relief to Hero Electric since it failed to make a prima facie case or establish that the balance of convenience was at all in their favour or that they would suffer irreparable hardships by such a launch.
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The tribunal also noted that Hero MotoCorp had investments of about Rs 400 crore to reach the stage of commercial launch, apart from the investments it made in Ather Energy. The company had spent more than Rs 7,000 crore for enhancing the goodwill and reputation of the brand ‘Hero’ in the past 10 years as against only Rs 65 crore invested by the Naveen Munjal Group in the promotion of ‘Hero Electric’
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This is a huge break for Pawan Munjal, this means the electric vehicle can be sold in their current dealer infrastructure network without any issues. Because the other thing Hero Electric was claiming was that Hero MotoCorp can’t even sell EVs at their dealerships. I was actually surprised the brothers did not come to a licensing deal…but egos are egos.
One other thing we are seeing is excellent public acceptance of the new X-tec models. It finally feels like Hero has come up with vehicles that will appeal to the urban and rural youth in looks and features. This upcoming festival season will be very interesting to see.
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I found this mention in the annual report of hero motor. they didn’t get any amount for this may be pending in the future need to pay. they put this in contingent liability.
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Well, I was wrong, and Hero will be launching two-wheeler under Vida brand only.
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And here is an official news confirmation on the same:
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