On this page ▾
Today's prices ask more of Eicher Motors than of Hero MotoCorp.
At current prices, buyers of Eicher Motors are assuming about 22% 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: Eicher Motors is worth about 1.9 times Hero MotoCorp on the stock market.
- Record: Eicher Motors has grown revenue faster: Eicher Motors compounded at about 12% a year (FY2018–FY2026) and Hero MotoCorp at about 5% (FY2018–FY2026).
- What to watch: royal enfield volumes at Eicher Motors; rural demand at Hero MotoCorp.
| Eicher Motors | Hero MotoCorp | |
|---|---|---|
| Price | ₹7,650 | ₹5,385 |
| Market cap | ₹2.10L Cr | ₹1.08L Cr |
| P/E | 35.1 | 18.0 |
| P/B | 8.37 | 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
Royal Enfield, and trucks with Volvo
Eicher Motors owns Royal Enfield, the motorcycle brand behind the Classic, Bullet, Hunter, Meteor and Himalayan, which dominates India's mid-size (250–750cc) segment and sells a growing number of bikes abroad, including its 650cc twins.
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
Eicher Motors has grown revenue faster: Eicher Motors compounded at about 12% a year (FY2018–FY2026) and Hero MotoCorp at about 5% (FY2018–FY2026). By revenue, Hero MotoCorp is about 2.0 times the size of Eicher Motors. Eicher Motors kept 23.6% of revenue as net profit in FY2026; Hero MotoCorp kept 12.2% of revenue as net profit in FY2026 — a sign of very different business models.
Full ten-year tables and charts are on each company's page: Eicher Motors · 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
- Royal Enfield volumesGrowth in the 350cc segment and exports sets the pace.
- Pricing powerRoyal Enfield's brand lets it raise prices with less impact on demand.
- Rural demandCommuter bike sales follow farm incomes.
- Premium pushHigher-priced bikes would lift margins.
05What could go wrong
- Competition in mid-size bikesRivals have launched models aimed directly at Royal Enfield's buyers.
- Export marketsOverseas demand and currencies can be volatile.
- 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 Eicher Motors 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, Eicher Motors trades at 35.1 times earnings and 8.37 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 Eicher Motors and Hero MotoCorp?
Eicher Motors owns Royal Enfield, the motorcycle brand behind the Classic, Bullet, Hunter, Meteor and Himalayan, which dominates India's mid-size (250–750cc) segment and sells a growing number of bikes abroad, including its 650cc twins. Hero MotoCorp, controlled by the Munjal family, was Hero Honda until the two partners separated in 2011.
Are Eicher Motors 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 Eicher Motors and Hero MotoCorp?
Worked backwards from the share price, Eicher Motors needs about 22% growth and Hero MotoCorp about 1% growth, against 19% and 12% in their own records.