Hero Motors shares: 3 back-to-back upper circuits! Stock jumps 46% from IPO issue price - Should you buy?
Hero Motors share price: Hero Motors shares have surged 46% from their IPO issue price of ₹84, with the stock hitting its third consecutive 5% upper circuit on October 29.
The sharp rally has put the recently listed stock back on investors’ radar, supported by strong September-quarter earnings and improving operating performance.
Hero Motors shares were locked in a 5% upper circuit at ₹122.40 in intraday trade on Thursday, October 29, marking the third consecutive session in which the stock hit its upper price band. The stock opened at ₹120 apiece on the BSE before climbing to its upper circuit level.
The shares have gained nearly 16% over the past three trading sessions and are now up approximately 46% from their IPO issue price of ₹84. However, the stock's recent momentum comes against a mixed short-term performance: it has declined around 12% over the past month while gaining approximately 5% in a week.
Hero Motors made its stock market debut on September 23, 2026, listing at a discount to its IPO price. The shares opened at ₹82.10 on the BSE, down 2.26% from the issue price of ₹84, before recovering sharply to close at ₹98.51, representing a gain of 17.27% over the IPO price.
The company's strong quarterly performance has provided a fundamental trigger for investor interest. On October 13, Hero Motors reported a 115.6% year-on-year increase in net profit to ₹10.2 crore for the quarter ended September 2026, compared with ₹4.73 crore in the corresponding quarter of the previous year.
Revenue from operations rose 24.9% year-on-year to ₹319.3 crore from ₹255.7 crore. Operating performance improved even more sharply, with earnings before interest, tax, depreciation and amortisation (EBITDA) climbing 92% to ₹35.9 crore from ₹18.7 crore a year earlier.
The EBITDA margin expanded to 11.3% from 7.3%, marking an improvement of approximately 400 basis points. The combination of revenue growth, stronger profitability and margin expansion indicates an improvement in the company's operating performance.
Alongside its quarterly results, Hero Motors announced plans to acquire an additional 39% stake in its UK-based subsidiary, Hewland Engineering Ltd (HEL), for approximately £0.60 million in cash.
The proposed transaction involves the purchase of 8,039 equity shares from existing shareholders William Hewland and Siobhan Hewland. Following the acquisition, Hero Motors' stake in the subsidiary will increase from 51% to 90%. The transaction is expected to be completed within approximately six months and does not require government or regulatory approvals.
Hero Motors designs, develops and manufactures powertrain solutions for automotive original equipment manufacturers (OEMs). Its product portfolio caters to two-wheelers, electric bicycles, off-road vehicles, electric and hybrid cars, and heavy-duty vehicles.
The company operates across India, Europe, the US and ASEAN markets. Its customers include BMW, Ducati, Enviolo, Formula Motorsport, Hummingbird EV and HWA, giving it exposure to multiple automotive segments and international markets.
After the sharp rally, investors will be watching whether Hero Motors can sustain its momentum and build on its recent gains.
According to Prathamesh Kadiwal, Research Analyst at Bonanza, Hero Motors is well-positioned to benefit from the premiumisation trend in the automobile industry, improving operating leverage and easing input costs.
“Its focus on higher-value components and a healthier product mix could support margin expansion and earnings growth. The company’s improving balance-sheet position and strong return ratios further strengthen its growth outlook. However, investors should track demand trends, margin sustainability and execution of growth plans,” said Kadiwal.
The analyst's assessment highlights the potential for sustained earnings growth, provided the company can maintain its improving margins and execute its expansion plans.
Pranati Deva is a seasoned financial journalist with over a decade of experience in high-pressure newsroom environments, currently working as a Senior Sub Editor at LiveMint. Over the years, she has developed a reputation for sharp editorial judgement, a strong grasp of market dynamics, and the ability to translate complex financial developments into clear, engaging stories for a wide audience. <br><br> Her core areas of coverage include stock markets, leading listed companies, currencies, and commodities, with a particular strength in fast-paced, real-time market reporting. She is known for handling breaking market news, earnings-driven stock movements, and macroeconomic developments with speed, accuracy, and context—qualities that are essential in financial journalism. <br><br> Pranati has built a diverse and credible professional track record across some of India’s most respected news organisations, including MintGenie, CNBC-TV18, Business Standard and EconomicTimes.com. During her stints at these platforms, she produced data-driven market stories, curated and steered live blogs during volatile trading sessions, and conducted interviews with market veterans, fund managers, economists, and industry experts. Her work often combines on-ground reporting with analytical depth, helping readers make sense of daily market fluctuations and longer-term trends. An alumnus of the Symbiosis Institute of Media and Communications and Hansraj College, University of Delhi, Pranati brings a strong academic foundation to her journalism. She specialises in real-time financial reporting, with a keen focus on precision, balance, and insight, aiming to decode market movements in a way that is both informative and accessible to readers across experience levels.
Get Latest real-time updates
Catch all the Business News , Market News , Breaking News Events, JIO IPO Listing Today LIVE and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
HomeMarketsStock MarketsHero Motors shares: 3 back-to-back upper circuits! Stock jumps 46% from IPO issue price - Should you buy?
✕
Wait for it…
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.