Hero MotoCorp shares special dividend: Shares of Hero MotoCorp Ltd shall trade ex-dividend on Wednesday as the company board of the two-wheeler major announced a whopping dividend of 5,000 per cent for the eligible shareholders of the company, along with the quarterly results for the period ended on December 31, 2024.
On February 6, 2025, Thursday, the company board of the Hero MotoCorp considered and approved an interim dividend at 5000 per cent, that is, Rs. 100 per equity share, having face value of Rs 2 each for the financial year 2024-25, said the company in an exchange filing.
"Accordingly, the company board had fixed February 12, 2025 as record date for determining entitlement of members for the purpose of payment of interim dividend. The payment of dividend/dispatch of dividend warrants will be completed by March 08, 2025," the filing added.
To note, dividend is paid on the face value of the stock and the value of the dividend is subtracted from the market value of the stock. It is another way of rewarding the shareholders. However, investors buying the stock on record date shall not be eligible for the dividend.
Shares of Hero MotoCorp settled Rs 4,082.15 on Tuesday, falling nearly 2.75 per cent for the day. The two-wheeler player was commanding a total market capitalization of little more than Rs 81,500 crore. The stock has corrected nearly 35 per cent from its 52-week high at Rs 6,245, hit in September 2024.
Hero MotoCorp reported a 12 per cent year-on-year (YoY) rise in net profit at Rs 1,203 crore for the quarter ending December 31, 2024, beating estimates. The auto player reported revenue of Rs 10,211 crore in Q3FY25, registering a growth of 5 per cent YoY. Ebitda quarter rose 8.4 per cent YoY to Rs 1,476 crore, while the margins improved by 50 basis points to 14.5 per cent for the quarter.
Choice Broking revised its FY26/27 EPS estimates downwards by 6.1 per cent/7.1 per cent and roll over our forecasts forward to come up with a revised target price of Rs 5,099; valuing the company at 17 times on FY27E EPS while maintaining a 'buy' rating on Hero MotoCorp driven by its focus on scaling up the premium product portfolio and a strong boost to rural demand.
Axis Securities has maintained its 'buy' rating on the stock with a target price of Rs 5,285 on the back of its long-term growth strategy and new product launches. Hero MotoCorp impresses with its premium liquid-cooled vehicle launches comprising 160cc scooters, and 210cc & 250cc bikes, said InCred Equities, with an 'add' rating on the stock with a trimmed target price of Rs 5,525.
Along with the dividend and quarterly earnings, the company board of Hero MotoCorp also approved investment of upto Rs 5.15 crore for Solar Power Wheeling project, for the Company’s plants at Dharuhera and Gurugram under Group Captive mechanism in its meeting held on February 6.