Hero Motocorp Ltd - Safe Buy

CMP: 1925

Hero Motocorp Ltd. designs, manufactures and distributes motorcycles. The Company's products also include motorcycle parts and accessories.

Hero Motocorp is a good bet in large-cap space. Its currently trading at a P/E of 18 with amazing dividend yields of over 5% in the last 12 months. Minimal liability makes it a safe bet. Revenues have risen from 9,899 Crores to 19,245 Crores in the last 5 years. Profits have risen from 858 Crores to 1928 Crores in the last 5 years. NPM has increased marginally from less than 9% to 10% over 5 years. Hero MotoCorp pays advance tax of Rs 180 crore versus Rs 120 crore last year. Buy, accumulate on dips and hold for long term gains.