get 30% returns by buying Hero Moto with target of 3480

Hero Motocorp

Hero Motocorp Ltd., formerly Hero Honda, is an Indian motorcycle and scooter manufacturer based in New Delhi, India. The company is the largest two wheeler manufacturer in India.

Reasons

Festive season is expected to do well.

Cost of raw material is going down

Cost of fuel is going down

FInancials

Sales of Hero is expected to increase from 27000cr to 32000cr in 2017

EPS of Hero is expected to increase from 124 to 174 in 2017

Valuation

at current price of 2300 the stock is valuing at 18PE

we are expecting that share will be trading 20PE

We are expecting that share will reach 3480