The stock of 2-wheeler company Hero MotoCorp is witnessing a tremendous rise on Monday. During the initial trading, the stock was seen trading with a gain of about 5%. The company's performance has been strong in the second quarter of the current financial year, after which this rise is being seen in the stock. After the results were released, brokerage firms are also looking bullish on the stock.

Brokerage firms Jefferies, Nomura, Motilal Oswal, Emkay Global and Nuvama Institutional Equities have given Buy rating on the stock. These firms say that recovery in rural demand, upcoming launches and improvement in margins can lead to further growth.

34% upside expected
Emkay has set a target price of ₹ 6,200 per share with a Buy rating on the stock. The stock is expected to rise by 34% as compared to Friday's closing price. The brokerage firm said that the risk-reward of the stock looks attractive. The 2-wheeler industry is expected to continue to benefit from growth. The company is preparing to launch products in several segments in the coming time. The outlook looks better in the short term. The brokerage firm has raised EPS by 4% for FY25, 7% for FY26 and 6% for FY27. Valuation attractive after correction Motilal Oswal says that volume growth has been 13% in the festive season. The effect of strengthening momentum and improvement in rural sentiment will be seen from the wedding season in November and December. However, this brokerage has cut EPS by 1% for FY25. At the same time, this cut has been done up to 11% for FY26. This decision has been taken due to the estimate of volume growth and other income estimates. Even after the recent correction, the valuations look attractive. Motilal Oswal has set a target price of ₹ 5420 per share with a Buy rating on the stock. What will be the positive trigger ahead? Global brokerage firm Jefferies has set a target price of ₹ 5,500 per share with a Buy rating on the stock. This brokerage firm says that the second quarter results have been as per estimates. EBITDA growth was as per estimates and EBITDA per vehicle remained at record high levels. This brokerage firm says that double digit growth can be seen in 2-wheeler growth in India during the next 3 years. However, it has also cautioned about the decline in market share in the 2-wheeler segment. It has also said that if premium motorcycles and electric vehicles (EVs) succeed, it will be a positive thing. Nomura has set a target price of ₹ 5,805 per share with a Buy rating on the stock. This brokerage firm says that improvement in rural demand will be a key driver of growth. The brokerage firm said that the second quarter results were as per estimates. Earnings growth is strong and valuation looks attractive. There is also scope for further improvement in margins. The 2-wheeler industry is expected to grow by 10% during FY25-26.