Sales have grown from around Rs.22k million to around Rs.123k million from 2000 to 2009. Profits have grown from around Rs.1k million to around Rs.12k million from 2000 to 2009.
Hero Honda Motors Ltd. has been earning a return of at least 32% on its net worth per year from 2000 to 2009. It has earnings per share of around Rs.90 in the last 12 months.
Hero Honda Motors Ltd. has a cash and bank balance of around Rs.2k million. It has investments of around Rs.33k million. It has a net worth of around Rs.38k million. It has a market capitalization of around Rs.312k million.
At a market price of around Rs.1530 and earnings of around Rs.90 the initial rate of return is around 5 percent which we can easily get in an FD ! The value of the company according to me should be at least Rs.2700.
Hero Honda Motors Ltd. is an Auto company and has a Debt Equity Ratio of 0.02. Competitors are Bajaj Auto, TVS Motor, Mah Scooters, Kintec Eng and Scooters India.
No comments:
Post a Comment