Motilal Oswal Recommends 'BUY' on Hero MotoCorp, Sets Target at INR 6804

• Hero MotoCorp's 3QFY26 PAT of INR 14.4 billion exceeded estimates, driven by higher other income.
• Margins remained stable year-on-year despite the ramp-up in its EV business.
• Motilal Oswal projects a 7% volume CAGR for HMCL over FY25-28, fueled by new launches and export growth.
• The company is expected to benefit from a gradual rural recovery due to strong brand equity.
• Motilal Oswal reiterates a 'BUY' rating with a target price of INR 6,804, citing attractive valuation.