TL;DR
Hero MotoCorp's stock fell over 5% after a Jefferies downgrade due to concerns about its declining market share and fading GST-driven demand.
Hero MotoCorp's stock experienced a notable decline of over 5% on December 18, 2025, after Jefferies downgraded its rating to 'Underperform' from 'Hold'. The brokerage firm also revised its target price downwards, implying a potential 15% downside from the current market price.
Jefferies cited concerns over Hero MotoCorp's market share, which has seen a dip in December after a seasonal improvement during festive months. The brokerage noted that the demand boost from recent GST cuts has faded, and the company's domestic two-wheeler wholesale market share has fallen to a 25-year low of 28% in the first eight months of FY26. Despite the stock's 40% rise year-to-date, Jefferies considers its valuation expensive and prefers other automotive stocks.
