Hero MotoCorp Ltd., the world’s largest two-wheeler manufacturer by unit volume, is all set to go ex-dividend tomorrow, i.e., 24th July 2025. The company has announced a final dividend of ₹65 per share, a massive 3250% return on its nominal face value of ₹2.
This announcement has sparked investor interest, leading to a 1.35% jump in the stock, hitting a day’s high of ₹4399.60 on Wednesday, compared to the previous close of ₹4340.95.
📅 Ex-Dividend Date: 24th July 2025
🎁 Dividend: ₹65 per share (3250% of face value ₹2)
💼 Company: Hero MotoCorp Ltd
📊 Market Cap: ₹87,281.85 Crores
📈 Stock Price (July 23): High of ₹4399.60, up 1.35%
🧾 What Does Ex-Dividend Mean?
If you buy shares on or after the ex-dividend date, you won’t receive the declared dividend. To qualify, you must own the stock before this date. So if you’re eyeing Hero MotoCorp’s 3250% dividend, make sure you already own it by today.
💸 Understanding the Dividend: Why 3250%?
The ₹65 per share dividend may seem huge, but the key lies in the face value, which is ₹2. So:
₹65 / ₹2 × 100 = 3250%
This doesn’t mean you get 3250% on your investment – it’s a percentage of the face value, not the market value. Still, this translates to a dividend yield of 3.80% – very respectable for any long-term investor.
📊 Hero MotoCorp Financial Snapshot (FY24-25 Q4)
| Metric | Q4 FY23-24 | Q4 FY24-25 | % Change |
|---|---|---|---|
| Revenue | ₹9,794.01 Cr | ₹10,244 Cr | +4.5% |
| Net Profit | ₹935.01 Cr | ₹1,161.33 Cr | +24.2% |
Key Financial Ratios:
- Debt-to-Equity: 0.04 (Very Low)
- ROE: 15.15%
- ROCE: 19.61%
- Net Profit Growth (3-yr Avg): 16.05%
- P/E Ratio: 20.63 vs Industry Avg: 153.22 → (Suggests undervaluation)
🏢 About Hero MotoCorp: Industry Giant in Two-Wheelers
Hero MotoCorp, headquartered in New Delhi, was born as Hero Honda in 1984 – a JV between Hero Cycles (India) and Honda (Japan). In 2011, the two parted ways, and Hero MotoCorp became fully Indian-owned.
Today, it’s a global leader in affordable two-wheeler mobility.
🌍 Global Presence:
- Exports to 47 countries
- Manufacturing units in India, Colombia, and Bangladesh
- 10,000+ Customer touchpoints worldwide
🔧 Product Portfolio:
- Popular brands: Splendor, Passion, HF Deluxe, Xpulse, Maestro, Glamour
- Recently entering EV segment with Vida Electric Scooters
🛵 Market Leadership & Competitive Edge
Hero has held the #1 spot in the Indian two-wheeler market for over two decades, with about 30% market share in volume terms.
Strengths:
- Robust rural reach
- Strong dealer network
- Affordable pricing
- Trusted brand image
Challenges:
- Rising competition in EV space
- Urban demand shift toward premium bikes
- Tightening regulations (BS-VI norms, EV incentives)
🔌 EV Plans & Future Outlook
Hero MotoCorp is actively investing in its EV segment through its brand VIDA. The company is not overly concerned about short-term margin pressure due to EV investments, as it sees this as a planned growth phase.
Margin Guidance: 14–16% EBITDA
Growth Strategy Includes:
- Better product mix
- Price hikes
- LEAP cost-saving initiatives
- Lower raw material costs
🏁 Hero vs Peers: How Does It Stack Up?
| Company | M-Cap (Cr) | P/E | Debt/Equity | ROE | Dividend Yield |
|---|---|---|---|---|---|
| Hero MotoCorp | ₹87,282 | 20.63 | 0.04 | 15.15% | 3.80% |
| Bajaj Auto | ₹2,49,000 | 30.8 | 0.01 | 22.7% | 3.36% |
| TVS Motor | ₹1,17,000 | 47.9 | 0.82 | 28.1% | 0.85% |
| Eicher Motors | ₹1,13,000 | 32.1 | 0.03 | 22.2% | 1.08% |
| Honda Motorcycle (India) | Unlisted | NA | NA | NA | NA |
Takeaway:
While TVS and Eicher have higher ROEs, Hero still stands strong on valuation, dividend yield, and balance sheet health. It offers a good mix of income and safety, especially for long-term conservative investors.
📈 Should You Buy Hero MotoCorp?
Pros:
✅ Consistent dividends
✅ Strong balance sheet
✅ Expanding EV presence
✅ Attractive valuation vs peers
✅ Dominant market position
Cons:
⚠️ Slower urban growth
⚠️ Competition in EV segment
⚠️ Margin pressure from transition
If you’re looking for a stable blue-chip stock with good dividend income, low risk, and long-term potential, Hero MotoCorp fits the bill well.
📌 Final Thoughts
Hero MotoCorp’s 3250% dividend announcement is not just a headline – it’s a reflection of solid fundamentals, shareholder reward policy, and financial discipline. As it turns ex-dividend tomorrow, all eyes will be on its price movement and future prospects.
The company is not only riding ahead in the petrol-engine world but is also slowly gearing up for the EV revolution, making it a two-wheeler titan worth watching.
🔔 Reminder for Investors:
To receive the ₹65 dividend, you must own the stock before the ex-dividend date (24 July 2025). If you buy on or after this date, you won’t get the dividend.
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