Target: ₹3,475
CMP: ₹3,028.55
Hero MotoCorp (HMCL) launched its first co-developed product with Harley Davidson (HD) – ‘X440’ – at CIT Jaipur. This marks HMCL’s entry into >400cc category where it had no presence earlier.
The X440 retains the retro look of Harley Davidson bikes and comes with three variants: Denim, Vivid and S. Ex-showroom price ranges between ₹2.29 lakh and ₹2.69 lakh. It will be produced at HMCL’s Neemrana plant and would be retailed through Harley Davidson’s dealer network across the country.
HD X440’s starting price of ₹2.29 lakh is very aggressive and it looks like a credible product from the Harley brand. While we await real-world feedback, the product ticks all the right boxes on paper to make it successful. This platform will also have a different product under Hero brand later during the year.
Two-wheeler demand recovery in the domestic market is expected to sustain on a low base, led by healthy recovery in the urban market and gradual recovery in the rural market. HMCL is a pure play on the domestic two-wheeler industry and its core strength lies in the 100cc motorcycle segment.
We reiterate our Buy rating with a TP of ₹3,475 (based on 16x June 2025 + ₹23/share for its stake in NBFC business + ₹116/share for its stake in Ather Energy).