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The market asks roughly as much of Bajaj Auto as of Hero MotoCorp.
At current prices, buyers of Bajaj Auto are assuming about 7% growth against 19% in its own record; for Hero MotoCorp it is 1% against 12%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: both on discounted cash flow.
- Size: Bajaj Auto is worth about 2.8 times Hero MotoCorp on the stock market.
- Record: Bajaj Auto has grown revenue faster: Bajaj Auto compounded at about 12% a year (FY2018–FY2026) and Hero MotoCorp at about 5% (FY2018–FY2026).
- What to watch: export demand at Bajaj Auto; rural demand at Hero MotoCorp.
| Bajaj Auto | Hero MotoCorp | |
|---|---|---|
| Price | ₹10,850 | ₹5,385 |
| Market cap | ₹2.98L Cr | ₹1.08L Cr |
| P/E | 22.8 | 18.0 |
| P/B | 7.68 | 4.99 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Discounted cash flow | Discounted cash flow |
01Two businesses
Motorcycles, three-wheelers and exports
Bajaj Auto makes motorcycles such as the Pulsar, Platina and Dominar, the Chetak electric scooter and India's best-selling three-wheelers. It also builds and sells motorcycles in partnership with KTM and Triumph.
The world's biggest motorcycle maker
Hero MotoCorp, controlled by the Munjal family, was Hero Honda until the two partners separated in 2011. It is the world's largest two-wheeler maker by volume, dominant in commuter motorcycles such as the Splendor and HF Deluxe, especially in rural India.
02The records side by side
Bajaj Auto has grown revenue faster: Bajaj Auto compounded at about 12% a year (FY2018–FY2026) and Hero MotoCorp at about 5% (FY2018–FY2026). By revenue, Bajaj Auto is about 1.3 times the size of Hero MotoCorp. Bajaj Auto kept 16.8% of revenue as net profit in FY2026; Hero MotoCorp kept 12.2% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: Bajaj Auto · Hero MotoCorp.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Export demandExports are a big share of volumes, and currencies in markets such as Nigeria can swing them sharply.
- Premium motorcyclesHigher-priced models carry better margins than commuter bikes.
- Rural demandCommuter bike sales follow farm incomes.
- Premium pushHigher-priced bikes would lift margins.
05What could go wrong
- Emerging-market currenciesDevaluations hit export volumes and margins.
- EV competitionStart-ups and incumbents are crowding the electric scooter market.
- Share lossRivals have taken share in scooters and premium bikes.
- EV transitionBeing late to EVs could cost share.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is Bajaj Auto or Hero MotoCorp better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, Bajaj Auto trades at 22.8 times earnings and 7.68 times book value, and Hero MotoCorp at 18.0 times earnings and 4.99 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between Bajaj Auto and Hero MotoCorp?
Bajaj Auto makes motorcycles such as the Pulsar, Platina and Dominar, the Chetak electric scooter and India's best-selling three-wheelers. Hero MotoCorp, controlled by the Munjal family, was Hero Honda until the two partners separated in 2011.
Are Bajaj Auto and Hero MotoCorp valued the same way?
Yes — both on discounted cash flow, so their workings compare like for like.
What does today's price assume for Bajaj Auto and Hero MotoCorp?
Worked backwards from the share price, Bajaj Auto needs about 7% growth and Hero MotoCorp about 1% growth, against 19% and 12% in their own records.