What is the profit margin in two-wheeler dealership?

Ans- The general two-wheeler Dealership Margins ranges from 50,000 to 75,000 Rupees for Scooties and for Bikes the per margin profit ranges from 75,000 to 1,00,000 Rupees. The dealer margins range from 4% to 7% depending on the brand and its authenticity of being a domestic brand or an imported vehicle.

What is the market share of Hero MotoCorp?

In terms of market share, Hero MotoCorp remains on the top of the list with a 34.50 percent market share.

Is Hero MotoCorp a good investment?

Overall, based on these and some more parameters, our prognosis is that Hero MotoCorp and Eicher Motors quality as Excellent Quality stocks which Bajaj Auto and TVS Motor Company qualify as Good Quality stocks….

CALENDAR YR PORTFOLIO RT BENCHMARK RT
2020 55% 17%
2021 74% 30%
2022 -16% -5%
Overall (CAGR) 36% 14%

What is PE ratio of Hero MotoCorp?

PE vs Industry: 500182 is good value based on its PE Ratio (22.1x) compared to the Indian Auto industry average (34.5x)….Price To Earnings Ratio.

PE Ratio
company 22.1x
industry 34.8x
market 20.9x

How do dealerships make money?

In addition to profit generated from financing or leasing a car, dealers make money from selling different insurance packages or warranties: extended warranties, tire and wheel protection, so on and so forth. With each sale of an additional item, the dealer is making some profit.

What is dealer margin?

A dealer margin, or dealership profit margin, is the monetary difference between the invoice price, which is the amount that a dealership pays to acquire a vehicle, and the MSRP, which is the manufacturer suggested retail price – also known as the sticker price.

Who is the largest two-wheeler manufacturer in India?

Hero MotoCorp
In the financial year 2021, Hero MotoCorp was the leading two-wheeler manufacturer in India, with a market share of 37.04 percent. The volume of two-wheelers sold across India during the same period reached 15.12 million units, which was a decrease from the previous year’s 17.42 million units.

Which is best two-wheeler?

Top 10 Best Selling Two Wheelers in India in 2020

  • Bajaj Pulsar (75,669 units sold)
  • TVS XL 100 (55,802 units sold)
  • Honda CB Shine (50,825 units sold)
  • Suzuki Access 125 (50,103 units sold)
  • Royal Enfield Classic 350 (41,766 units sold)
  • Hero Glamour (35,752 units sold)
  • Hero Passion (34,797 units sold)

Is Hero MotoCorp good for long term?

This, however, provides a great opportunity for investors to enter a fundamentally strong business available at a reasonable price and run by a strong management. One such company is Hero MotoCorp (HMCL) which should be part of investors’ long-term portfolio.

Is Hero MotoCorp a debt free company?

Munjal said the company continues to remain debt-free and maintains a strong balance sheet. The company’s cash reserves have now reached Rs 14,096 crore, he added.

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