Hero Honda: Dividend Stock for Long Term Investment

hero_honda_logoHero Honda Motors Limited (HEROHONDA) is India’s largest 2 wheeler motorcycle manufacturer in India. It has two manufacturing facilities at Dharuhera and Gurgaon in Haryana, which produce over 3 million bikes per year. It is has largest market share in excess of 50% in Indian two wheeler segment.

One notable aspect that I personally like about HEROHONDA is its positioning in the market segment. It satisfies the vehicular needs of large number of middle class in India. It is very well positioned in a sense that recessionary trend, slow down, or increase in oil price improves its sales and revenue. This is evident by relatively stable stock during this current market turbulence since Year 2009.

Trend Analysis

The whole reason for any business to exist is to generate sales revenue and make more profits. At a minimum, the parameters listed below should have continuously increasing trends. All the data below is based on last 8 years i.e. from 2001 to 2008.

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