hero honda motors (DeutscheBank) Valuations do not reflect key risks; downgrading to Sell

A rocky road ahead; reducing target price to Rs1,600 (14% downside); Hero Honda has wall to climb on technology after dissolution of joint venture; Margins: Unlikely to improve in the medium term; Two-year core EPS CAGR (FY11E-13E) of 9%, trading at 19xFY12E core EPS
Date Rating Target Price Recommendation Price Broker house
20 Apr 2011 sell (from hold) 1600 (from 1750) 1777 DeutscheBank Report

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