India's Hero MotoCorp gains as CLSA says El Nino worries priced in
BUZZ-India's Hero MotoCorp gains as CLSA says El Nino worries priced in ** India's Hero MotoCorp HROM.NS rises 2.2% at 5,000 rupees
** CLSA says concerns around El Nino and demand are largely priced in, reiterating its "outperform" rating on stock and PT of 5,728 rupees
** Adds, there is no meaningful historical correlation between rainfall and the co's domestic two-wheeler volumes, countering fears of weather-led weakness
** CLSA expects about 5% volume CAGR over FY27-28 and EBITDA margins near 14%, aided by GST cuts and upcoming scooter launches
** Stock's current valuation implies zero growth and lower margins and any weakness driven by El Niño concerns could offer a buying opportunity - CLSA
** Avg rating of 33 analysts on HROM at "buy"; median PT is 5,963.50 rupees - LSEG-compiled data
** YTD, stock down 13.3% vs Nifty auto index's .NIFTYAUTO 4.4% drop
(Reporting by Kashish Tandon in Bengaluru)
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