Stock Picks: These five factors prompted JPMorgan to upgrade Hero MotoCorp, project 18% upside

Shares of two-wheeler manufacturer Hero MotoCorp Ltd

. will be in focus on Wednesday, November 19, after global brokerage firm JPMorgan upgraded the stock.

JPMorgan has raised its rating on Hero MotoCorp to 'Overweight' and increased its price target to ₹6,850. The revised target suggests an upside potential of 18% from Tuesday's closing level.

The upgrade is driven by signs of market share stabilisation after several years of erosion, along with a better outlook supported by new launches and prudent inventory management.

The brokerage also said that the recent GST cuts appear to have revived demand in the bottom half of the two-wheeler market, a segment where Hero MotoCorp is particularly strong.

In addition, Hero's improving position in the electric two-wheeler market, which had been a concern earlier, is seen as a positive.

JPMorgan further expects the valuation gap to narrow as fundamentals continue to improve.

Hero MotoCorp recently reported its second quarter earning, in which net profit rose 16% year-on-year to ₹1,393 crore.

Revenue from operations grew 16% to ₹12,126 crore from ₹10,463 crore in the year-ago period, while EBITDA rose 20% to ₹1,824 crore, with margins improving slightly to 15%.

Of the 42 analysts who have coverage on Hero MotoCorp, 24 of them have a 'Buy' rating, 13 say 'Hold', while five others have a 'Sell' recommendation.

Shares of Hero MotoCorp Ltd. settled 0.026% higher on Tuesday at ₹5,800, having gained 39% so far in 2025.