Hero MotoCorp, Tata Steel, Hindalco, IndusInd Bank and JSW Steel were among major gainers on NSE on Monday. Indian markets have largely ignored the tariff threats from the US President Donald Trump. Indian markets were trading marginally higher with NSE Nifty at 24,621 at the time of publication of this report. The volatility during the morning session was limited and majority of stocks on NSE Nifty 50 were trading in the green. Overall sentiment in the markets was positive but investors also concerned about the global sentiment. Hero MotoCorp was trading 3 percent higher. TVS Motor Company and Eicher Motors were also trading positive. Tata Steel shares were trading 2.44 percent higher. JSW Steel and SAIL were also trading positive.

Hero MotoCorp: Momentum, Strategy Shifts, and Analyst Perspectives

As of August 4, 2025, Hero MotoCorp’s shares commanded a price of ₹4,426.80, notching an impressive 2.7% daily gain. This upward move was punctuated by a key technical breakout above the 20-day Simple Moving Average, signaling revived momentum. Over the preceding three months, shares soared 18.4%, though this was not enough to offset a 16% decline over the past year, leaving the stock trailing the broader Indian auto sector. The price dynamics have been dramatic, clocking a 52-week high of ₹6,246.25 and a low of ₹3,344.

Hero MotoCorp stands on the cusp of major strategic evolution. A landmark announcement to enter the European market in Q2 FY26 underscores its ambition to diversify revenue streams and carve a niche in both electric and premium two-wheeler segments. This move is poised to reduce reliance on domestic cycles and inject fresh dynamism into its growth narrative.

Within India, Hero continues to lean on rural markets, which account for nearly half of its total sales. However, the pace of volume recovery in these areas has lagged expectations, creating a formidable challenge against the backdrop of industry shifts. Nevertheless, the company’s fortress-like balance sheet—with dividend payouts exceeding 50%—has helped sustain investor confidence amid uncertainty.

Hero’s electric vehicle journey, while nascent, is gathering pace. Direct exposure within the EV segment remains limited today, but plans to expand through enhanced partnerships with companies like Ather Energy and collaborations such as Gogoro indicate a commitment to accelerate in this fast-growing space. The tandem strategy could yield synergies and sharpen Hero’s competitive edge in the coming quarters.

Financially, Hero’s recent quarters have registered muted growth—a marginal quarter-on-quarter uptick in net profits and stagnant EBITDA margins. Nevertheless, market watchers anticipate that a combination of ramped-up production, new model launches, and the seasonal festive/export cycle could catalyze better performance ahead.

Market Sentiment: Analysts Remain Cautiously Optimistic

The spectrum of analyst opinions on Hero MotoCorp reveals a complex blend of caution and optimism. In August 2022, ICICI Securities maintained a ‘Hold’ stance, flagging ongoing margin pressures, slow EV progress, and the need for decisive volume ramp-ups. Their target price of ₹2,925—15x FY24E EPS—highlighted doubts about immediate upside, especially given the stock’s long-term underperformance relative to the Nifty Auto Index.

In stark contrast, Axis Securities, in August 2025, delivered an ‘Overweight’ (Buy) recommendation with a considerably more aggressive target price of ₹5,285. This signaled renewed confidence in the prospect of a sustained price recovery as the company executes on its new chapter.

On the broader analyst front, a total of 32 experts currently cover Hero, with consensus gravitating towards a ‘Hold’ rating. Yet, price target projections span up to ₹6,200, reflecting divided expectations around how swiftly and successfully Hero can scale its electric vehicle play and overseas operations.

Strategic Inflection Points: Key Lessons for Investors

Hero MotoCorp presently straddles a delicate balance—leveraging its legacy prowess in rural and commuter motorcycles while betting big on electric two-wheelers and overseas expansion. The company’s ability to realize these ambitions will be crucial to restoring sustainable value creation. The market’s view remains measured: further upside hinges solidly on Hero’s capacity to deliver tangible gains in EV adoption, execute ramped-up exports, and capture the considerable sales potential during India’s festive period.

JSW Steel: Robust Fundamentals and Growth Outlook

Moving to JSW Steel, the stock is presently trading at about ₹1,045, with a 1.7% uptick on August 4, 2025, following a challenging monthly performance (-3%). Analyst price targets center around ₹1,048, with bullish outliers extending as far as ₹1,270.

The company delivered a standout Q1 FY26 performance: consolidated EBITDA surged 37% year-on-year and 19% quarter-on-quarter, significantly outperforming consensus forecasts. The robust showing was powered by enhanced US operations, where favorable tariff conditions boosted profitability, and complemented by cost discipline in India—partly attributable to the strategic culling of less lucrative mining concessions. Declining coking coal prices and a 9% iron ore price reduction by NMDC are poised to further compress costs in the quarters ahead.

Management’s guidance for FY26 remains fortified. The company forecasts Indian steel consumption growth of 8.5-9.5% YoY, with JSW Steel itself targeting a robust 10.4% YoY sales increase. In addition, ongoing capacity projects promise to unlock further efficiencies and reinforce JSW’s margin leadership.

Analyst Perspectives: Optimism with a Tinge of Prudence

Analyst ratings reinforce confidence in JSW Steel’s multi-pronged growth model. J.P. Morgan, as of July 21, 2025, reaffirmed an ‘Overweight’ designation, raising the price target to ₹1,100 and highlighting exceptional operational execution, especially in North America, alongside structural cost improvements domestically. The note acknowledged that although Indian steel prices are on a softening trend, these pressures are being counteracted by lower input costs and growing sales volumes.

The consensus among 33 analysts places the average 1-year target price at ₹1,048, with projections ranging from a conservative ₹766 to a bullish ₹1,270. Ratings are split between ‘Strong Buy’ and ‘Hold,’ reflecting both the optimism around India’s infrastructure-led steel demand and recognition of volatility in global steel pricing.

ICICI Direct’s January 2023 assessment, which maintained a ‘Hold’ and set a baseline target of ₹825 (7x EV/EBITDA), appears notably cautious in light of JSW’s recent outperformance and elevated market expectations.

Strategic Takeaways for Market Participants

JSW Steel is emerging as a defining beneficiary of India’s accelerating infrastructure cycle, underpinned by sectoral cost leadership and notable improvements across international divisions. While most analysts see considerable upside, persistent watchfulness is warranted as steel prices remain sensitive to global economic swings.